2007-2008 Saskatchewan Provincial Budget
The Hon. Andrew Thomson Budget and Performance Plan Summary Minister of Finance
Minister’s Message
It is with great pleasure that I table the 2007-08 Budget and supporting documents for public review and discussion.
There has never been a better time to be in Saskatchewan. Our province is enjoying prosperous times, and this Budget is making life even better for Saskatchewan families.
This Budget provides more reasons for young people to make their future right here, continues with the business tax cuts we began last year, makes new investments in health care, and provides more funds for our communities and economic infrastructure.
For young people, university tuition remains frozen at 2004 levels until 2008. To help young people start their careers right here at home, we have introduced a new Graduate Tax Exemption that, coupled with other measures, will allow graduates to earn $20,000 of income tax-free in each of the first five years following graduation.
This is a Budget that takes care of Saskatchewan families as it introduces a universal $15 seniors’ drug plan to help make drugs more affordable for all seniors. It also increases funding to provide more surgeries and diagnostic testing. It delivers historic levels of funding for municipalities to help keep taxes down, for school boards to improve the quality of education and for universities to improve research and scholarship.
Our biggest-ever capital and infrastructure budget exceeds $500 million and includes funds to complete highway twinning work, rebuild rural highways, and other efforts to maintain and improve key economic transportation corridors. These new investments in our highways and transportation networks are part of an unprecedented $5 billion investment over the next 10 years and build on The Fuel Tax Accountability Act introduced last year.
I invite you to browse this and other related documents to discover for yourself how we are helping make life better for Saskatchewan families through measures provided in Budget 2007-08.
Honourable Andrew Thomson Minister of Finance
Table of Contents
MINISTER’S MESSAGE
TECHNICAL PAPERS Saskatchewan’s Economic Outlook ...... 6 General Revenue Fund Financial Outlook ...... 13 A Plan for Growth and Opportunity ...... 20 Graduate Tax Exemption ...... 28 Saskatchewan’s Tax Expenditures ...... 30 2007 Intercity Comparison of Taxes and Household Charges ...... 35 2007-08 Borrowing and Debt ...... 39 Fiscal Stabilization Fund ...... 44 Saskatchewan Infrastructure Fund ...... 45
GENERAL REVENUE FUND (GRF) FINANCIAL TABLES GRF – Statement of Operations and Accumulated Deficit ...... 48 GRF – Statement of Change in Net Debt ...... 48 GRF – Statement of Cash Flow ...... 49 GRF – Schedule of Revenue ...... 50 GRF – Schedule of Expense ...... 51 GRF – Schedule of Debt ...... 52 GRF – Schedule of Borrowing Requirements ...... 53 GRF – Schedule of Guaranteed Debt ...... 54
SUMMARY FINANCIAL BUDGET DETAILS (FINANCIAL TABLES) Summary Statement of Surplus ...... 56 Summary Statement of Changes in Net Debt ...... 58 Summary Statement of Financial Position ...... 59 Summary Statement of Debt ...... 60 Supplementary Information ...... 61
PERFORMANCE PLAN SUMMARY Performance Plan Summary ...... 70
2007–2008 Saskatchewan Provincial Budget
Technical Papers 6 Budget 2007-08 | Budget and Performance Plan Summary and thirdat7.2percent,respectively. Saskatchewan placedsecondat9.4percent 2003 at6.5percent.In2004and2005, Saskatchewan GDPgrowthrankedthirdin third. Innominalterms(valueofoutput), 2004 and2005,Saskatchewangrowthranked all Canadianprovincesat4.1percent.In (volume ofoutput)wassecondhighestamong In 2003,SaskatchewanrealGDPgrowth economic growth. has alsocontributedtotheProvince’s manufacturing, retailtradeandconstruction strength inothersectors,mostnotably have nodoubtplayedarole.However, provinces. Oil,naturalgasandothermining performed wellrelativetootherCanadian In recentyears,Saskatchewan’s economyhas R R I I Saskatchewan’s EconomicOutlook N N E E T T A A R R
Billions of Dollars L L O O
A A 25 30 35 40 45 D D N N U U D D C C
N N T T I I O O O O 2000 M M N N I I N N A A L L
G G D D P P 2001 elGPNominal GDP Real GDP 2002 and cropproductionimproves. 2.9 percentin2007aspotashsalesrebound Real GDPgrowthisforecasttoincrease GDP growthisexpectedtoreach2.2percent. the woodandpaperproductsindustry, real a smallercrop,andchallengesinforestry to stalledcontractnegotiationswithChina), In 2006,despitelowersalesofpotash(due by 10.8percent. while SaskatchewanrealGDPhasincreased nominal GDPhasincreasedby24.9percent Between 2003and2005,Saskatchewan GDP growthaveraged6.0percentyear. averaged 7.7percentyearwhileCanadian nominal terms,SaskatchewanGDPgrowth growth averaged2.7percentyear. In year. Incomparison,CanadianrealGDP real GDPgrowthaveraged3.5percent Over theperiod2003to2005,Saskatchewan 2003 2004 2005 Budget and Performance Plan Summary | Budget 2007-08 7 99 00 00 22 88 00 00 22 77 00 00 22 ** 66 growth in the first, second and third quarters, growth in the first, due in This deceleration was respectively. U.S. demand for building part to reduced strong vehicles. However, materials and motor real personal disposable employment and with increases in household income, together to support growth net worth, has continued in consumer spending. demand is Strong growth in final domestic over the anticipated to fuel economic growth growth forecast period. Canadian real GDP cent in of 2.3 per cent in 2007 and 2.8 per of 2008 is anticipated, following growth 2.7 per cent in 2006. average The inflation rate is expected to per cent 1.6 per cent in 2007, and then 1.9 up. Short- in 2008 as the pace of growth picks to average term interest rates are anticipated cent in 4.2 per cent this year and 4.3 per are 2008 while long-term interest rates this year expected to average 5.4 per cent dollar and 5.9 per cent in 2008. The Canadian in 2007 is expected to average 88.4 US cents and 89.6 US cents in 2008. 00 00 22 S N O I
T S I N D O N I K T O I C O
D O C N L I T O M U C
O O
C N I C I O M C M O E O
N L N O K K A O C O O N C E
O O E O
L I L N N T T T DP (% Change) 2.7 2.3 2.8 2.9 A A A I U U I G N D O O D
R A Actual A D D E N N CPI (% Change)Unemployment Rate (%)Short-term Interest Rates (%)Long-term Interest Rates (%) 4.0 6.3 5.4 2.0 4.2 6.4 5.4 1.6 4.3 6.5 5.9 1.9 4.5 6.5 6.3 2.0 Real Canadian Dollar (US cents)* 88.4 88.4 89.6 90.3 T N N A A N A A I C C Canadian real GDP growth slowed to a Canadian real GDP growth slowed 1.4 per cent annualized rate in the fourth quarter of 2006, following 3.8 per cent, 2.0 per cent and 2.0 per cent annualized The global economy remains sound despite The global economy The Euro- the U.S. economy. some slowing of on a positive footing, zone ended 2006 growth better-than-expected thanks in part to posted economy while China’s in Germany, per cent in 2006. growth of over 10.0 real GDP After a strong start to 2006, U.S. part to a growth decelerated due in large and slowdown in residential investment motor vehicle production. Fortunately, not led to adjustments in these sectors have rest of the significant spill-over effects in the has Household consumption U.S. economy. remained firm, supported by employment Consequently, gains in the services sector. in 2007 U.S. real GDP growth of 2.4 per cent and 3.1 per cent in 2008 is expected, in 2006. following growth of 3.3 per cent 8 Budget 2007-08 | Budget and Performance Plan Summary US$58.00, respectively. 2007 and2008,averagingUS$58.75 of WTIoilisexpectedtodeclineslightlyin oil toUS$66.25in2006.Thepriceofabarrel of abarrelWest Texas Intermediate(WTI) geopolitical tensionsdrovetheaverageprice in bothproductionandrefiningaswell Strong globaldemand,tightsparecapacity O O A A A A R R V V V V U U E E E E E E S S T T R R R R US$/Barrel C$/GJ O O L L A A A A O O U U 0 1 2 3 4 5 6 7 8 9 10 20 30 40 50 6 70 G G G G O O 0 0 R R 1987 E E E E 1970 K K C C
A A A A
E E F F N N
N N O O C C N N N N O O R R 1989 U U U U
M M 1974 N N A A A A L L O O M M L L
N N W W N N O O 1991 - - A A T T D D R R T T I I 1978 E E I I
U U T T O O N N Y Y R R I I E E L L A A
1993
W W P P P P L L R R
R R A A G G I I 1982 I I C C C C B B A A E E E E L L S S 1995 S S S S E E
P P
R R I I 198 C C A E E 1997 c 6 S S tual A c tual 1990 1999 in 2007and$283.22pertonne2008. are anticipatedtorise$280.87pertonne year, 4.3percentlowerthanin2005.Prices Potash pricesaveraged$270.44pertonnelast remain historicallyhigh. down slightlyovertheforecastperiodthey 2006. Whilepricesareexpectedtocome $6.25 perGJin2008comparedto$6.33 average $6.12pergigajoule(GJ)in2007and The priceofnaturalgasisexpectedto 1994 2001 2003 1998 2005 2002 2007 Fore 200 c 6 Fore ast 2009 c ast Budget and Performance Plan Summary | Budget 2007-08 9 99 99 00 00 00 00 22 22 ast c 2008 88 88 00 00 Fore 00 00 22 22 6 200 S E 77 77 C I 00 00 2004 00 00 R 22 22 P
Y T I D 2002 O S M E 66 66 The economic forecast assumes both crop The economic forecast assumes normal in quantity and crop quality will be of some of each of the forecast years. Prices the major grains are anticipated to decrease Cattle and hog in the upcoming crop year. prices are also anticipated to decline throughout much of the forecast period. 00 00 M C I 00 00 O 22 22 2000 R P C
E Y T C I R tual D c 1998 U O ** A O 55 55 M S 00 00 E 00 00 6 M 22 S R 22
O E 199 E C C L I
B L R P A A
R W H K U E S 1994 O T N A L O T E U L R O C - T I P ) 7.94 6.33 6.12 6.25 6.20
N U R L 1992 GJ O O G A
N A L U
R A N R R O N O as (C$/ F F U 1990 A G
T K K L E O O U G 300 275 250 225 200 175 150 125 100
O C O A
I Actual $/Tonne C L L R R T T Wheat (C$/tonne)*Barley (C$/tonne)*Canola (C$/tonne)*Cattle (C$/cwt) 113.80 77.97 240.00 150.00 110.00 300.00 86.91 130.00 100.00 300.00 143.86 84.42 85.04 247.98 159.97 82.91 257.88 91.70 78.81 80.93 WTI Oil (US$/barrel)Natural 56.70 66.25 58.75 58.00 55.00 Hogs (C$/ckg)* Crop year basis 138.88 137.08 132.36 132.27 129.99 Potash (C$/tonne)* 282.67 270.44 280.87 283.22 284.40 E U G U V O O A A The crop harvest is also an important growth. determinant of provincial economic Saskatchewan farmers harvested 25.6 million tonnes of grains, oilseeds and specialty crops in 2006, which was 16.5 per cent less than crop quality the harvest in 2005. However, was excellent with 89 per cent of the 2006 spring wheat crop in the top two grades. 10 Budget 2007-08 | Budget and Performance Plan Summary provide some addedstimulus.RealGDP is implemented taxcutsarealsoexpected to over theforecastperiod. Recently to sustaintheProvince’s economic growth mining andconstruction sectorsisexpected Ongoing strengthinthe oil andgas,other Saskatchewan realizednetfarmincometo and Agri-FoodCanadaisforecasting As isshowninthefollowingtable,Agriculture S S C C F F A A A A R R R R O O elzdNtIcm 9. 4. 4. 839.2 646.3 340.3 195.7 Realized NetIncome (Millions ofDollars) e ahIcm ,0. ,4. ,3. 1,742.6 7,184.8 809.4 5,442.2 1,537.3 1,694.8 6,375.4 6,758.5 4,680.6 1,249.3 5,221.2 $ 1,206.1 1,768.0 5,552.3 6,193.9 3,784.3 4,944.6 $ 1,101.7 1,227.4 1,611.8 4,966.5 3,354.7 6,255.3 $ 5,153.6 1,323.2 1,803.2 3,128.8 4,932.1 Net CashIncome $ Net OperatingExpenses Total Cash Receipts Program Payments Total Market Receipts Livestock Receipts Crop Receipts Source – Historical data (2005), Statistics Canada, Catalogue Nos. 21-010-XIE to 21-018-XIE. to 21-010-XIE Nos. Catalogue Canada, Statistics (2005), data Historical – Source S S M M (Net cash income is a measure of the cash available to producers from the farming business for business farming the from producers to available cash the of measure a is income cash (Net K K Millions of Tonnes P P living expenses, principal repayment and reinvestment in the farm. Realized net income includes income net Realized farm. the in reinvestment and repayment principal expenses, living depreciation charges and income-in-kind.) and charges depreciation
A A P P I I 10 15 20 25 30 35 N N T T R R 0 5 C C C C O O 1987 O O H H D D M M E E Forecast figures for 2006 and 2007, Agriculture and Agri-Food Canada. Agri-Food and Agriculture 2007, and 2006 for figures Forecast U U W W C C E E , , T T A A
1989 2 2 I I N N O O 0 0 ’ ’ N N 0 0 S S 5 5
E E - - 2 2 C C 1991 0 0 O O 0 0 N N 7 7 O O 1993 M M I I C C
O O 1995 U U T T 2 L L 0 A O O 0 c 5 tual O O 1997 K K 1999 $192.9 million,or29.8percent,from2006. reach $839.2millionin2007,anincreaseof in 2007and2.7 percentgrowthin2008. private sector isforecasting2.8percent growth growth overthenextfew years. Onaverage,the sector forecastsofSaskatchewan realGDP The currentforecastisconsistent withprivate and 2.6percentin2008. forecast toincreaseby2.9percentin2007 A 2 v 0 e 0 2001 r 1 a - g 0 5 e 2003 2005 2 0 0 2007 6 Fore c ast 2009 2 0 0 7 Budget and Performance Plan Summary | Budget 2007-08 11 99 88 00 00 00 00 22 22 88 00 00 22 77 00 H 00 T 22 2008 W O R 77 G
00 tor c P 00 e 22 D S G
66 L 00 A 00 E 22 R
66 N 00 A 00 22 e Private W c E 2007 H C T A Y K T R S S hewan Finan A A c A S
M C R E M askat R O S U F O
S F
S
T T P S S D A A G C 6
C E L E R A R 200 E O O F R F
rowth (000s) 8.1* 4.0 4.2 4.2 N N R G A A O T DP (% Change) 5.7 3.2 3.2 2.7 W W C G E E E H H S DP (% Change) 2.2 2.9 2.6 2.4 )
C C 6 t G E 3 34 32 30 40 38 T T n T
e A A
Actual Billions of 1997 Dollars 1997 of Billions A lobal Insight 2.8 2.3 2.8 C K K
V CPI (% Change)Employment 2.0* 1.8 1.8 1.8 Unemployment Rate (%)Unemployment Rate Change)Personal Income (% 4.5 4.7* 4.6 6.5 4.6 2.1 4.6 3.7 Nominal Real CBOCCentre for Spatial EconomicsTD BankRoyal Bank of CanadaBank of MontrealCIBC 2.8 3.6 3.0 1.6 2.7 3.0 2.8 2.5 2.7 3.0 3.3 2.5 2.9 2.3 2.5 3.4 2.7 N/A G Scotia BankAverage 2.7 2.8 2.7 2.8 2.9 2.7 Retail Sales (% Change)* 6.0* 5.3 3.9 4.5 S S r I e R A A P P S S ( 12 Budget 2007-08 | Budget and Performance Plan Summary February 2007. 471,900 inFebruary2006to492,500 employment increasedby20,600from 2007 LabourForceSurvey, Saskatchewan’s According toStatisticsCanada’s February 6,600 jobsin2007and3,4002008. the privatesectorisforecastinganadditional increase of8,100jobsin2006.Incomparison, 4,000 in2007and4,2002008,followingan Employment isanticipatedtoincreaseby S S A A S S
Thousands of Jobs K K A A 410 420 430 440 450 4 470 480 490 500 510 520 T T 6 C C 0 H H 1992 E E W W A A N N
E E M M 1994 P P L L O O Y Y M M 199 E E N N 6 T T S
askat F F O O R R 1998 c E E hewan Finan C C A A A c tual S S T T 2000 c Private e growth forecasts. could allhaveamajorimpactoncurrent dollar andanaboveorbelowaveragecrop movements inthevalueofCanadian changes incommodityprices,dramatic important markets,unforeseensignificant pronounced slowdownintheU.S.andother affect thegrowthofProvince.Amore expectations ofeconomicconditionsthat The forecastisbasedonreasonable 2.6 percentin2008. GDP toincreaseby2.9percentin2007and 2007-08 BudgetforecastsSaskatchewanreal Consistent withprivatesectorforecasts,the C C O O N N 2002 C C L L U U S S I I O O S e 2004 N N c tor 200 6 Fore c 2008 ast Budget and Performance Plan Summaryt | Budget 2007-08 13 )) tt 88 ee .. mm ee gg 11 oo gg nn rr 33 dd (( ff aa uu hh BB CC $$ tt tt 11 .. ss nn 00 aa ee cc 77 rr rr ee rr uu oo CC FF $$ rr 33 dd .. ee rr tt 55 33 rr aa uu QQ $$ rr 55 .. aa 44 ee 33 YY -- dd ii 9.3 per cent, in tax revenue (net of the 9.3 per cent, in tax in Sales Tax $136.1 million reduction impact of the two revenue due to the percentage point PST rate reduction implemented in October 2006), mainly in due to increased economic activity 2005 and 2006; 8.7 per cent, in non-renewable resource revenue due to higher oil revenue, from partially offset by lower revenue potash, natural gas and other resources; 8.9 per cent, in all other own-source revenue categories, largely reflecting increases in interest, premium, discount income, and exchange revenue, SLGA net entities; and dividends from other Crown and, largely 5.8 per cent, in federal transfers, reflecting unbudgeted federal funding under Bill C-48 and the Agricultural Policy Framework, partially offset by lower funding under the Canada Health Transfer (CST). (CHT) and Canada Social Transfer MM $$ rr tt 55 .. ss • of $374.9 million, or an increase • an increase of $131.9 million, or • an increase of $78.8 million, or • an increase of $76.5 million, or ee 22 tt 11 rr 66 aa uu QQ $$ tt 99 ee .. tt ee 11 aa gg 00 dd mm 11 ii uu tt S BB ss T EE $$ S A C E R O F
L A E I T ee C cc A N nn D aa A ll P aa N I U BB F
tt F ee 7 R gg 0 - dd G
6 uu 7 0 BB 0 0 FF - 2 General Revenue Fund Financial Outlook Financial Fund Revenue General RR
6 GG Revenue $ 7,727.2 $ 7,800.1 $ 8,129.5 $ 8,324.5 $ 8,389.3 $ 662.1 Debt Servicing Costs BalancePre-Transfer to/(from) GRFFSF Transfer to/(from) GRFSIF Transfer 551.0 75.0 26.9 551.0 – 75.0 (12.5) 541.0 114.5 541.0 – – 103.2 541.0 (80.0) 168.0 – (10.0) (97.9) 141.1 (97.9) – (97.9) (75.0) (Millions of Dollars) Operating ExpenseOperating Surplus 7,149.3 7,261.6 577.9 7,474.0 7,680.3 538.5 7,680.3 655.5 531.0 644.2 709.0 131.1 F 0 R 0 G 2 The current 2006-07 General Revenue Fund The current 2006-07 a pre-transfer (GRF) forecast represents improvement of $141.1 million relative to the 2006-07 Budget. This forecast million improvement is composed of a $662.1 increase increase in revenue, a $531.0 million of in operating expense and a decrease servicing $10.0 million in government debt costs. is The $70.1 million GRF surplus forecast million $31.8 million lower than the $101.9 Budget. surplus estimated in the 2006-07 This reduction reflects the pre-transfer reduced improvement of $141.1 million being budgeted by the removal of the $75.0 million Fund transfer from the Fiscal Stabilization million to the (FSF) and a net transfer of $97.9 (SIF). Saskatchewan Infrastructure Fund The $662.1 million increase in the 2006-07 revenue forecast is mainly due to: 14 Budget 2007-08 | Budget and Performance Plan Summary anincreaseof $33.7million,or • anincreaseof$47.4million,or • anincreaseof$58.5million,or • anincreaseof$88.5million,or • anincreaseof$104.1million,or • anincreaseof$109.7million,or • operating expenseforecastismainlydueto: The $531.0millionincreaseinthe2006-07 Provincial DisasterAssistance Program. increase ineligibleclaims inthe with theSGEUworkstoppageandan Safety, primarilyduetocostsassociated 26.0 percent,inCorrectionsandPublic service centre;and, operating pressuresandacommunity programs, RegionalHealthAuthority increased utilizationofout-of-province initiatives, thejointjobevaluation, health sectorrecruitmentandretention 1.5 percent,inHealth,primarilydueto city tradesandskillsfacility; service communitycentreandaninner number ofteachersretiring,amulti- commitments, changesintheestimated primarily forK-12capitalproject Teachers’ PensionsandBenefits), 6.5 percent,inLearning(including funding; initiatives andmaintenancecapital education infrastructure,labourmarket Employment, primarilyforpost-secondary 14.6 percent,inAdvancedEducationand Agricultural PolicyFramework; program andadditionalfundingunderthe Canadian AgriculturalIncomeStabilization primarily duetofullyfundingthe2006 39.3 percent,inAgricultureandFood, initiatives; primarily foraffordablehousing 18.2 percent,inCommunityResources, balance attheendof2006-07. $16.6 million,leavinga$97.9millionSIF offset byanin-yeartransfertotheGRFof forecast tobe$114.5million,partially The transferfromtheGRFtoSIFis FSF balanceattheendof2006-07. forecast tobezero,leavingan$887.5million The transferbetweentheGRFandFSFis expected interestrates. debt servicingforecastreflectslower-than- The $10.0milliondecreaseinthegovernment agreement anddelaysinethanolproduction. the cancellationofMapleLeafFoods in IndustryandResources,primarilydueto decrease of$21.8million,or23.8percent, The increasesarepartiallyoffsetbya of totalrevenue. $6.59 billionin2007-08, about84percent Own-source revenueisforecasttobe REVENUE OWN-SOURCE federal transfers. to lowertaxandoilrevenue,aswell $8.39 billion.Thedecreaseisprimarilydue current 2006-07revenueforecastof of $520.0million,or6.2percent,fromthe $7.87 billionin2007-08.Thisisareduction Total GRFrevenueisestimatedtobe OUTLOOK REVENUE GRF consecutive balancedbudgetonaGRFbasis. The 2007-08GRFBudgetrepresentsthe14th 2 2 0 0 0 0 7 7 - - 0 0 8 8
G G R R F F
F F I I N N A A N N C C I I A A L L
O O U U T T L L O O O O K K Budget and Performance Plan Summary | Budget 2007-08 15 Transfers from Crown Entities: 7.6% Transfers Other Revenue: 4.7% be $895.5 million, a reduction of be $895.5 million, a reduction of 2006-07 $350.6 million from the current decrease forecast of $1,246.1 million. The is primarily due to a lower WTI price of the forecast, an increase in the value Canadian dollar and a higher light-heavy 2007-08 price differential. In addition, the in the forecast incorporates an increase the percentage of oil production receiving royalty/tax rate and lower Fourth Tier lower bonus bid revenue. of to be $324.8 million, an increase 2006-07 $158.3 million from the current forecast of $166.5 million due to volumes. increases in both price and sales estimated to be slightly above the current 2006-07 forecast level due to a higher price forecast. Transfers from the Transfers Government of Canada: 16.2% Non-Renewable Resources: 19.3% Non-renewable Resource Revenue Non-renewable Resource revenue is forecast Non-renewable resource in 2007-08, a reduction to be $1,515.4 million from the current 2006-07 of $128.3 million million. The forecast for forecast of $1,643.7 revenue reflects a non-renewable resource for oil revenue, partially reduced outlook forecasts for potash and offset by improved other natural resource tax bases. • Oil revenue for 2007-08 is forecast to • Potash revenue for 2007-08 is forecast • 2007-08 is Natural gas revenue for E U N E V E R
F R G
8 0 - 7 0 0 Taxes: 52.2% Taxes: 2
F O
N O I T $7.87 billion I S O P Total 2007-08 Revenue: Total to be $874.5 million, a reduction of to be $874.5 million, the current 2006-07 $153.5 million from main forecast of $1,028.0 million. The the factor in the forecast reduction is full-year impact of the two percentage point reduction in the PST rate, estimated more at $339.5 million ($203.4 million than the 2006-07 reduction), partially taxable offset by forecast growth in the consumption base. (CCT) revenue Corporation Capital Tax The are forecast to be lower in 2007-08. to large decrease in CIT is primarily due adjustment payments received prior-year for the in 2006-07 that are not forecast In addition, the second current fiscal year. will reduce Reform year of Business Tax both CIT and CCT revenue by a combined than in $155.8 million, $60.5 million more take 2006-07, as further rate reductions effect on July 1, 2007. These decreases are partially offset by forecast growth in both tax bases. M O C Tax Revenue Tax is forecast to be $4,104.9 million revenue Tax of $280.9 million in 2007-08, a reduction 2006-07 forecast of from the current $4,385.8 million. •2007-08 is forecast revenue for Tax Sales • (CIT) and Corporation Income Tax 16 Budget 2007-08 | Budget and Performance Plan Summary value oftax points. in thenationalallocation andchangesinthe forecast. Theincreaseis mainlyduetogrowth of $54.5millionfromthe current2006-07 be $1,098.6millionin2007-08, anincrease programs (CHTandCST)areestimatedto Federal transfersforhealthandsocial Canada SocialTransfer (CST) Canada HealthTransfer (CHT)and 2006-07 forecast. reduction of$121.6millionfromthecurrent estimated tobe$1,278.5millionin2007-08,a CANADA OF Transfers fromtheGovernmentofCanadaare GOVERNMENT THE FROM TRANSFERS lower availableworkingcapital. due tolowerinterestearningsasaresultof below thecurrent2006-07forecast,primarily be $373.7millionin2007-08,$16.9 Other own-sourcerevenueisexpectedto Other Own-SourceRevenue an increaseof$33.0millionfrom2006-07. CIC dividendisforecasttobe$200.0million, mainly reflectingahigherCICdividend.The above thecurrentforecastfor2006-07, to be$596.8millionin2007-08,$27.7 Transfers fromCrownEntitiesareexpected Transfers fromCrownEntities F F I I S S C C aua a C/J .482 .659 6.20 281.50 5.97 58.75 20.56 273.00 6.86 64.85 19.29 280.24 58.75 8.28 279.00 20.56 232.00 59.97 22.77 6.14 45.08 14.98 Potash (C$/tonne) Natural Gas(C$/GJ) Differential (US$/barrel) Oil(US$/barrel) WTI aainDla U et)7. 398. 87.9 86.9 83.9 78.4 Canadian Dollar(UScents) A A L L
Y Y E E A A R R
N N O O N N - - R R E E N N E E W W A A B B L L 2 E E 0 A
0 c R R 4 t E E - u 0 S S a 5 O O l U U R R C C E E
2 P P 0 A R R 0 c I I 5 t C C - u 0 E E a 6
existing programswind down orexpire. for othermajorcost-sharingagreementsas Child Careagreement,andreducedfunding cancellation ofthe2005EarlyLearningand funding in2006-07underBillC-48,the primarily duetothereceiptofone-time forecast of$343.3million.Thedecreaseis $163.4 millionfromthecurrent2006-07 $179.9 millionin2007-08,adecreaseof Other federaltransfersareestimatedtobe Government ofCanada Other Transfers fromthe program withrevisedprovincialentitlements. will announcearenewedEqualization It isexpectedthatthe2007federalbudget floor paymentiszero. prices. Assuch,Saskatchewan’s shareofthe due tohistoricallyhighoilandnaturalgas Saskatchewan wasa“have”provinceprimarily on athree-yearaverage,inallofwhich Agreement, thisfundingisallocatedbased for 2007-08.UnderthecurrentInterim $11.7 billionfloorpaymentforEqualization The federalgovernmentannouncedan Equalization l A A S S S S U U M M 2 B 0 P P u 0 T T d 6 I I O O g - 0 e N N 7 t S S F 2 o 0 r 0 e 6 c - a 0 s 7 t 2 B 0 u 0 d 7 89.4 g - 0 e 8 t Budget and Performance Plan Summary | Budget 2007-08 17 eral d 2007-08 Fe Transfers e c our S -07 6 Other Own- Community Resources: 8.0% Highways and Transportation: 4.3% Highways and Transportation: Learning and Advanced Education and Employment: 20.7% 200 Agriculture and Food: 3.9% $669.4 million, or 8.6 per cent; 8.0 per cent; $334.8 million, or 4.3 per cent; 3.9 per cent; and, $1,468.1 million, or 18.9 per cent. E Other Departments and Agencies: 18.9% S GRF operating expense in 2007-08 will be GRF operating expense in 2007-08 allocated as follows: • Health, $3,446.1 million, or 44.2 per cent; • Learning, $945.0 million, or 12.1 per cent; • Advanced Education and Employment, • Community Resources, $625.2 million, or • Highways and Transportation, • $301.1 million, or Agriculture and Food, • and agencies, remaining departments N E P rown X C Transfers E
* G 6 N I T es A c 2005-0 R E P O Resour
F R G
8 E 0 C - R 7 Taxes 0 U 0 O Health: 44.2% 2 S 2004-05*
F 8 Y 0 O tual - B
c
7 N E 0 * A 0 O U I 2 0 N
T I $7.79 billion o E t S ,000
V 6 5,000 4,000 3,000 2,000 1,000 9,000 8,000 7,000 O 5 E
P 0 R - Dollars of Millions
4 M F 0 R O 2007-08 Operating Expense: 0 C G 2 GRF EXPENSE OUTLOOK GRF expense (operating expense plus Total to be debt servicing costs) is estimated of $8.35 billion in 2007-08, an increase the $128.4 million, or 1.6 per cent, from increased current 2006-07 forecast, reflecting health, spending in key areas, including education, transportation and infrastructure. GRF Operating Expense GRF operating expense is forecast to be $7.79 billion in 2007-08, an increase of $109.4 million, or 1.4 per cent, from the current 2006-07 forecast. 18 Budget 2007-08 | Budget and Performance Plan Summary requirements. government debtandworkingcapital mainly duetoanincreaseinbothgross forecast of$541.0million.Thechangeis $19.0 millionfromthecurrent2006-07 $560.0 millionin2007-08,anincreaseof Debt servicingcostsareestimatedtobe Debt ServicingCosts 2 2 G G D D 0 0 E E R R 0 0 B B F F 4 4
Per Cent T T Millions of Dollars - - T T 0 0
O O S S 5 5 12 1 20 1,000 2,000 3,000 4,000 5,000 6 7,000 8,000 9,000 E E
0 4 8 6 T T ,000 t t R R A A o o 81-82 V V
0 L L 2 2 I I
0 0 C C * A E E 0 0 I I X X 7 7 N N c 83-84 P P tual - - G G 0 0 E E 8 8
N N C C 2004-05* S S O O E E 85-8 S S T T S S 6 6
.9 A A 87-88 S S
A A
S S 89-90 H H Operatin A A R R E E 91-92 2005-0
O O F F g
Expense 6 R R 93-94 * 18.7 E E V V E E N N 95-9 U U E E 18.7 percent. and iswellbelowthe1993-94peakof comparable towhatitwasin1986-87, The currentinterest-to-revenueratiois about 7.1percentoftotalGRFrevenue. Debt servicingcostsin2007-08represent 6 97-98 De 200 b t S 6 99-00 ervi -07 c in g A 01-02
c C tual osts 03-04 2007-08 05-0 6 Fore 07-08 7.1 c ast Budget and Performance Plan Summary | Budget 2007-08 19 )) ll tt 33 00 88 .. .. aa bb 00 tt 55 99 -- ee oo 77 11 77 DD TT 88 00
(( tt 00 nn ii nn 22
ee ee $$ $$ gg mm Saskatchewan nn nn rr aa ee hh vv CC oo the GRF is expected GG 77 11 .. 00 00 -- 77 66 paper. 00 00 22 $$ )) tt 11 nn 33 ee
hh mm cc nn ** rr 7,600.5 $ (538.8) 7,242.4 (358.1) rr 55 aa 66 .. ee 00 00 vv -- $ 8,139.3 MM
00 oo 55 ff 44 00 GG oo
00
ll ss 22 aa aa FOUR-YEAR FINANCIAL covered by period PLAN four-year Over the current Act, The Balanced Budget million. to have a cumulative surplus of $928.2 balance is Over 84 per cent of this four-year and due to actual financial results in 2004-05 of 2005-06, with more modest surpluses for $70.1 million and $75.0 million forecast 2006-07 and 2007-08, respectively. period, government Over the same four-year million. debt has been reduced by $819.3 forecast to leave a balance of $52.4 million forecast to leave end of 2007-08. Further in the SIF at the in the information is provided Infrastructure Fund tt (( $$
oo tt TT bb ee DD ** 66
55 .. paper. 00 T 22 -- B The 88 44 E 33 00 00 D
22 T N $$ $ 382.6 $ 783.1 $ 853.2 $ 928.2 N A E L P M
L N A R I E C V N O This transfer is forecast A G N
I L F 8
A Fiscal Stabilization Fund Fiscal Stabilization 0 R T - A 7 O ll ss 0 E T aa uu
0 tt ll Y 2 - oo pp N * * *
I TT rr R
o uu rr t E U
SS aa 5 G O ee FF 0 F YY Actual Actual N RR - --
4 A 44 GG F Revenue $ 7,791.8 $ 8,217.6 $ 8,389.3 $ 7,869.3 * 2003-04 2004-05 2005-06 2006-07 7,289.8 47.4 2007-08 7,320.0 30.2 (Millions of Dollars) SIF Transfer to/(from) GRFSIF Transfer GRF Cumulative Surplus – – (97.9) 45.5 Operating ExpenseOperating SurplusDebt Servicing CostsPre-transfer Balance GRF to/(from) FSF Transfer 6,447.9 1,343.9 (382.5) 578.8 765.1 7,133.4 1,084.2 (139.0) 544.7 7,680.3 539.5 709.0 541.0 7,789.7 – 168.0 79.6 560.0 509.9 (480.4) (Millions of Dollars) * 0 R H 0 C G 2 The 2007-08 Budget incorporates a transfer The 2007-08 Budget incorporates GRF, of $45.5 million from the SIF to the for representing $40.0 million in funding and the Building Communities program $5.5 million for cost-shared municipal is infrastructure programs. This transfer to leave a balance of $377.6 million in the FSF to leave a balance Further information is at the end of 2007-08. provided in the SASKATCHEWAN INFRASTRUCTURE FUND FISCAL STABILIZATION FUND incorporates a transfer The 2007-08 Budget from the FSF to the GRF to of $509.9 million surplus under achieve a $75.0 million Act. Balanced Budget 20 Budget 2007-08 | Budget and Performance Plan Summary exploration andextraction,jobcreation. investment, capitalexpansion,resource changes thatencouragesavingsand have focusedonbroad-basedstructural and productiontaxstructures.Thesereforms revisions totheprovincialresourceroyalty business taxsystems,aswellsignificant major reformsoftheprovincialpersonaland investment. Since2000-01,therehavebeen structure thatwillencourageproductivityand economic strategyisacompetitivetax An essentialelementintheGovernment’s province’s youth. modern infrastructureandtrainingforthe depend on,includingqualityhealthcare, as itsupportspublicprogramsthatresidents improving thelivesofSaskatchewanpeople that arobustandvibranteconomyisvitalto The GovernmentofSaskatchewanrecognizes B B S S C C Improving Saskatchewan’s Competitiveness A PlanforGrowthandOpportunity: y y A A R R
S S E E T T a a K K
Millions of Dollars A A x x A A T T a a 1,000 1,100 1,200 1,300 1,400 1,500 1,600 T T t t I I N N i i C C o o G G H H n n
E E Y Y * Proje T T W W e e H H a a $1,373 A A 1999 E E r r N N
c R R tion forthe2006taxation year. ’ ’ S S I I G G
P P H H E E T T R R $1,346
S S 2000 E E O O N N N N V V A A I I R R L L
O O I I N N N N $1,298 2001 C C M M O O E E M M N N E E T T
T T A A $1,293 2002 X X
A A S S S S E E and opportunity. element intheGovernment’s planforgrowth Saskatchewan residentsisanessential Creating therightenvironmentfor public prioritieslikehealthcare. personal incometaxrevenuetofundkey provincial taxbase,generatinggreater The resulthasbeensignificantgrowthinthe and stayinSaskatchewan. improving theincentiveforresidentstowork Saskatchewan’s marginalincometaxrates, families. Thisreformalsolowered disposable incomeforindividualsand Saskatchewan residents,resultingingreater reform loweredpersonaltaxesforall fully implementedby2003.Personaltax reform ofthepersonaltaxsystemthatwas In 2000,theGovernmentbeganamulti-year REFORM TAX PERSONAL S S $1,270 S S 2003 M M E E N N T T S S $1,335 2004 $1,455 2005 $1,558 2006* Budget and Performance Plan Summary | Budget 2007-08 21 2 55 NN 6 11 OO 88 ,, 55 11 $$ 2007 $2,302 BB –– 66 11 MM 33 ,, ,482 7,2 44 6 11 2006 $2,353 $$ 6 22 KK 2005 $2,402 44 SS 00 ,, 33 5,48 22 $$ 2004 $2,441 00 BB second only to Alberta. Saskatchewan’s second only to Alberta. system also offers a Tax Personal Income child tax credit amount unique dependent for 2007), in recognition ($2,743 per child costs faced by all families of the additional raising children. personal tax Since 1999, Saskatchewan’s the provincial Personal reform has reduced an average Saskatchewan of Income Taxes $2,302. family by $1,238, from $3,540 to 77 AA 88 ,, 7 00 2003 $2,510 0 33 0 S 2 $$
E N X I
A 0 2002 S T 0 $2,686 66
CC N 0 55 E BB , 77 O 0 ,, I M 5 66 T $ O 11 P
C g M 2001 n $$ N $2,878 i E I n
X r N a E
E A
X r W nn A u n E 2000 T oo o $3,192 ii
e F H tt r
E pp f d C l i o M T mm
h A ee y O l C xx i K
C EE S 1999
o m N $3,540 yy I a A ll w
ii F S T L
mm e A h G aa I t m i FF N C
o I ll w 4,000 3,500 3,000 2,500 2,000 1,500 c N
aa C I
n tt y
I l V Dollars U oo i - TT Dependent Child Exemption – – Basic Personal ExemptionSpousal Exemption $ 9,027 $ 15,435 7,729 $ 8,778 15,435 $ 7,834 $ 8,778 8,553 o D O m E R a w P R T F Personal tax reform also re-introduced the Personal tax reform provincial Personal Income indexation of the and tax brackets. Indexation credits Tax taxpayers from “bracket protects provincial increases in income creep,” where automatic by the effect of inflation taxation are caused on personal income. credits and family-based tax Saskatchewan’s each income tax brackets have been increased The basic year to compensate for inflation. 2007 is the personal exemption of $8,778 for and the third highest provincial amount, are combined basic and spousal amounts 22 Budget 2007-08 | Budget and Performance Plan Summary small businessthresholdandarefundabletax elements ofthisreformincludeanexpanded Corporation IncomeTax (CIT)rate.Other significant reductioninthegeneral Corporation CapitalTax (CCT)anda include thephase-outofgeneral Key componentsofbusinesstaxreform Saskatchewan youth. provincial residents,particularly expands employmentopportunitiesfor sustainable economicdevelopmentand improved businessclimatethatpromotes provincial businesstaxsystemtocreatean announced amulti-yearreformofthe In the2006-07Budget,Government REFORM TAX BUSINESS I I B B m m U U p p S S T nMPCptl–PirExtendCarryForwardto10 Years * ITC onM&PCapital–Prior eea I ae1%1%1%12% 1.7% 13% FullyRefundable 1.75% 14% $500,000 1.85% $450,000 17% $400,000 3. 2.0% $300,000 0. 0. ITC onM&PCapital–Future Small Business(SB)Limit General CITRate 4thTier Oil Rate – GeneralRate – SurchargeRates CCT NewCapital – ExistingCapital – General CCTRate l l e e I I All measures effective July 1 of each year unless otherwise stated. Changes to the investment the to Changes stated. otherwise unless year each of 1 July effective measures All N N m m tax credit (ITC) on M&P capital were effective as of April 7, 200 7, April of as effective were capital M&P on (ITC) credit tax E E e e S S n n S S t t
a a T T t t A A i i o o X X n n
P P R R l l E E a a F F n n O O R R M M Refundable P r e - r e Non- f o 6 6 6 r .%31 3.0% – 3.1% 3.3% 0.15% 0.3% % %––– % m the province. interested inmovingjobsandcapitalinto both bylocalbusinessesandthose perceived asagreatplacetodobusiness, towards Saskatchewan.Saskatchewanisnow impact oninvestmentandbusinessattitudes standing andarealreadyhavingapositive improving theprovince’s competitive corporate taxrates,aresignificantly particularly thedramaticreductionsin Saskatchewan’s businesstaxreforms, eighth suchreductionsince1991. also reducedatthebeginningof2007– added sector. Thesmallbusinesstaxratewas credit forcapitalinvestmentsinthevalue- 2 0 0 6 * 6 . 2 0 0 7 * 2 0 0 8 * Budget and Performance Plan Summary | Budget 2007-08 23 NN OO BB % MM ON 35.1 KK SS % MB 33.5 BB % The significant improvements in business tax system Saskatchewan’s other competitive complement the province’s workforce, advantages – a highly productive competitive low cost of commercial property, quality utility and insurance costs and high public services. AA 30.0 K S % 38.9 CC s BB t Yes Yes No Yes Yes ) e s % g n S d o S 24.0 i E u t E T B AB n T
% A l e A t R a i R
n
25.4 I c
X n X y i A c v A i T l T o
r o S * P E P
S
% January 1, 2008, because they are subject to balanced budget requirements. V 6 E from 14% to 13% and CCT rate reduction from 0.5% to 0.4%, both effective d I Note: The figures do not incorporate Manitoba’s announced CIT rate reduction 0 Source – Finance Canada e T N 33.3 I c 0 C C B S n 2
E % u r U F o e B F t
n 34.4 f E L n
A L
A A I
d A g n C 0 N n a 40 30 20 10 I i N – M&P Rate– SB Rate– SB Threshold $ 400,000 12% $ 500,000 4.5% $ 500,000 10% $ 400,000 3% $ 400,000 10% 4.5% 13% 3% 12% 5.5%
I
paid by employers on their employees’ behalf.
d e G Labour-based levies include business payroll taxes, and health care premiums which are often ent C r Per V u R l o * CCT – General RateCIT – General Rate – 12% 10% – 12% – 13% 0.4% 14% – Labour-based Levies Labour-based O c f A e R n I P M B ( A key business tool used to determine the A key business tool used to determine investment attractiveness of a jurisdiction’s Rate Tax climate is the Marginal Effective overall (METR) analysis. Saskatchewan’s from METR will fall 8.9 percentage points, a result of 38.9 per cent to 30.0 per cent as business tax reform. 24 Budget 2007-08 | Budget and Performance Plan Summary the province. to expandemploymentopportunitiesacross development ofSaskatchewan’s resourcesand reforms tofurtherencourageexplorationand has introducedavarietyofroyaltystructure Over thepastseveralyears,Government of provincialnaturalresources. return fortheprovincefromdepletion structure andtheachievementofafair balance betweenacompetitiveroyalty that Saskatchewanmaintainsanappropriate monitors itsroyaltystructurestoensure province. TheGovernmentcontinually role thattheresourcesectorplaysin the importantinvestmentandjobcreation The Governmentrecognizesandappreciates REFORMS ROYALTY 1 1 S S 9 9 A A 9 9 S S 1 1 K K Mineral
Millions of Dollars t t A A o o 12,000 15,000 S 3,000 6,000 9,000
T T 2 2 ales C C 0 0 H H 0 0 0 5 5 E E W W 1991 A A N N
1992 V V A A L L U U 1993 Source: Value of Mineral Sales from the Saskatchewan Provincial Economic Accounts. Economic Provincial Saskatchewan the from Sales Mineral of Value Source: E E
O O F F 1994
M M Resource Revenue from the Saskatchewan Public Accounts. Public Saskatchewan the from Revenue Resource I I N N 1995 E E R R A A Mineral L L 1996
S S A A L L S 1997 E E lsResour ales S S
A A 1998 N N D D resource sectorssince1999. employment growthof9.0percentinthe also ledtoaverageannualprovincial and expandedproduction.Thisexpansionhas reflecting bothincreasedcommodityprices royalty revenuehassteadilyincreased, Saskatchewan resourceproductionand Over thepast15years,valueof innovative techniques. extraction andtheimplementationofthese research intonewtechniquestoimprove have beendesignedtoencourageboth Reforms totheoilandgasroyaltystructures exploration andnewexpandedmines. mining sectorstoencourageinvestmentin changes totheroyaltystructuresfor These reformshaveincludedsignificant
P P 1999 R R O O V V I I 2000 N N C C c e Revenue I I A A 2001 L L
R R E E S S 2002 O O U U R R 2003 C C E E
R R 2004 E E V V E E N N 2005 U U E E
0 500 1,000 1,500 2,000 2,500 Revenue Resour Millions of Dollars of Millions c e Budget and Performance Plan Summary | Budget 2007-08 25 % 6 12.0% 6 0 0 2
N I
S R O T C E S
EMPLOYMENT OPPORTUNITIES led to These strong economic results have has strong employment growth. Employment to 2006 risen in each year through the 2003 the period. In 2006, Saskatchewan achieved history, highest level of job creation in its working. with an average of 491,600 people in the Over 15,500 jobs have been created growth has province since 2003. Employment and been particularly strong in the resource an construction sectors, each averaging 2003, and annual rate of 8.3 per cent since cent and posting growth rates of 15.5 per 2006. in 12.2 per cent, respectively, labour productivity has Saskatchewan’s consistently ranked as the second highest in the country through the period 2003 to 2006. unemployment rate has been Saskatchewan’s In 2006, the among the lowest in the country. provincial unemployment rate averaged 4.7 per cent, the lowest level since 1981. New capital investment in Saskatchewan was New capital investment in the country in 2006, the fourth highest cent to $9.7 billion. This is growing 8.7 per history in Saskatchewan’s the highest level level. Through the and double the 1991 private sector capital 2003 to 2006 period, at an average annual investment has grown rate of 9.8 per cent. G N I D A E L
–
T N T E N E M T M S E N ) V O 5 N R I 0 I
0 L V 2
A N r T I E e
v P T o A
H e C s
G a I R e R r O
c T E n I C
H E e T S
g
a E G t T n N I e A c V V Transportation and Information SectorTransportation SectorWholesale and Retail Trade Housing Sector 31.4% 13.7% Manufacturing SectorFinance, Insurance, Real Estate 53. 10.5% r I e A ECONOMIC GROWTH R P P H ( The Government’s efforts to create a positive The Government’s economic growth are having environment for economic Saskatchewan’s the desired results. in terms of real Gross growth, measured (GDP), over the 2003 to Domestic Product cent, 2005 period has averaged 3.5 per growth leaders, with among the country’s highest rates ranking either second or third in each of those years. measured standard of living, Saskatchewan’s also in terms of real GDP per capita, has been among the highest in the country with growth through the 2003 to 2005 period, rates averaging 3.7 per cent. In 2005, real GDP per capita was the Saskatchewan’s highest in the country. other economic indicators Saskatchewan’s For leaders. are also among the country’s the value growth in example, Saskatchewan’s of building permits, total international the second exports and housing starts were highest in Canada in 2006. The growth in retail trade and in the value Saskatchewan’s of manufacturing shipments has also been very strong. 2 6 Budget 2007-08 | Budget and Performance Plan Summary that Saskatchewanfamiliesnowpayalower residential electricityandnaturalgas),means children’s clothing,readingmaterials, from thePST(suchasprescriptiondrugs, family essentialswhichcontinuetobeexempt in combinationwiththeextensivelistof For consumers,thesalestaxratereduction, PST savingsof$312. family offourearning$50,000seesannual tax savingsofabout$340million.Anaverage families andbusinesses,providing2007-08 lowers theleveloftaxationforSaskatchewan The reductioninthePSTratesignificantly last fall. the ProvincialSalesTax (PST)ratereduction provincial residentsandbusinessesthrough economic prosperitywassharedwithall and affordablehousing.Theprovince’s strengthening publicinfrastructurelikeroads programs likehealthcareandin to financekeynewinvestmentsinsocial the Governmentadditionalfiscalflexibility Saskatchewan’s economicprogressisgiving F F S S I I N N a a H H m m T T A A E E i i
Dollars l l R R R R i i e e P P I I s s N N 1,000 1,500 2,000 2,500 R R
w w 500 O O G G i i t t 0 V V
h h T T I I
N N H H $ $ C C $1,057 5 5 E E 0 0 I I
B A A P P , , C 0 0 L L R R 0 0
O O 0 0 C C
S S O O o o P P f f M M $780
E E I I S n n P P R R K c c A A I I o o T T R R m m Y Y I I S S e e O O $1,248 MB N N
O O F F
2 2 $1,375 0 0 ON 0 0 7 7
S S A A L L $1,888 E E S S Q
C T T services. into investmentsinimprovingpublic savings arenowavailabletobere-directed capital andoperatingexpenses.Thesetax community-based organizationspayontheir universities andschools)other municipalities, publicinstitutions(hospitals, by almost30percent,thesalestaxesthat The Government’s PSTinitiativealsoreduces, Saskatchewan residentstocross-bordershop. borders byreducingtheincentivefor communities locatednearourprovincial improves theretailcompetitivenessof the province.ThePSTratereductionalso of businessinvestmentandoperationin provincial taxsystemandlowersthecost rate improvesthecompetitivenessof For businesses,thereductioninPST on mostfamilies. levies a$1,056annualhealthcarepremium tax. AndwhileAlbertahasnosalestax,it residents ofanyotherprovincewithasales amount ofsalestax,onanannualbasis,than A A X X E E 208$2,018 $2,018 S S NB N S $1,626 PEI $2,135 NL Budget and Performance Plan Summary | Budget 2007-08 27 paper on S S E C C U S
N O
G N I D Graduate Tax Exemption Graduate Tax L I U B By creating the right environment for By creating the right broad-based Saskatchewan’s economic growth, made the province an even tax reforms have and build a future. This better place to live in ensuring that young is a critical element the province as they begin people remain in their careers. new tax The 2007-08 Budget introduces a at reduction that is directed specifically youth. For the first five years following graduation from an accredited post-secondary an program, new graduates will receive exemption additional $10,000 personal tax tax. in determining provincial income any This means graduates will not pay first $20,000 Saskatchewan income tax on the following of income for the first five years graduation. The page 28 offers more details on this initiative. page 28 offers more details on this 28 Budget 2007-08 | Budget and Performance Plan Summary person’s careerdevelopment. jurisdictions duringtheearlyyearsofa tax systemverycompetitivewithother full eligibilityperiod,makingSaskatchewan’s of $1,100peryear, or$5,500intotaloverthe qualifying foraSaskatchewantaxreduction This exemptionresultsinnewgraduates each ofthefiveyearsfollowinggraduation. on thefirst$20,000ofearnedincomefor graduates willnotpayprovincialincometax amounts, thisinitiativeensuresthatnew combined withexistingtaxexemption first fiveyearsfollowinggraduation.When by $10,000peryear, or$50,000duringthe by agraduatethatwillbeexemptfromtax by increasingtheamountofincomeearned change intheprovincialincometaxsystem This newinitiativecreatesafundamental (PSGTC) willnotbeextendedpast2006. one-year Post-SecondaryGraduateTax Credit with the2007taxationyear. Theexisting Tax Exemptionisbeingintroduced,beginning Saskatchewan, afive-year$10,000Graduate post-secondary graduatestoremainin To improvethefinancialattractivenessfor T T N N Graduate Tax Exemption 2 1 CPP Contribution/EIPremium rdaeTxEepin1,0 0001,0 00010,000 10,000 10,000 10,000 10,000 Graduate Tax Exemption Basic PersonalExemption A A T T S E E a a a X X Amount based on $20,000 of employment income. cent. per employment two of of factor $20,000 on based indexation annual Amount an Assumes W W x x s
k - - - C F F F a
r r R R G G t e e c E E d e R R h E E
i e A A t E
w E E a A D D r A A a m n U U n R R i o
A A n N N N u g T T o I I n s N N E E n t s
G G - T T R S S A A e
f X X F F u O O n
E E d 1 R R X X a
b G G E E l 2 M M e R R A A P P D D ,7 ,5 ,3 ,1 9,502 $ 9,315 $ 9,133 $ 8,954 $ 8,778 $ $ T T U U I I O O 1 A A ,7 ,7 ,7 ,7 1,177 1,177 1,177 1,177 1,177 9 N N 2 T T , 9 0 E E 5 0 S S 7 5 $ 2 0 2 , 1 0 3 0 programs andgraduateapprentices. graduates andhalftooftechnical year. Abouthalfwillbeissuedtouniversity Exemption certificateswillbeissuedeach It isexpectedthatabout10,000GraduateTax available forunusedtaxexemptionamounts. an additionalfive-yearcarry-forwardperiodis during theinitialyearsfollowinggraduation, For thosegraduatesthatearnlowerincomes 8 1 3,900 Diplomas Certificates/ $ 2 0 2 Total 2006-07 , $7.73 billion 3 0 Revenue 1 0 9 0 51.9% Taxes $ 1,000 Trades 2 0 2 , 4 0 9 1 0 2 $ 100 Professionals 2 4,300 graduates Under- 0 2 , 6 0 7 1 700 graduates Post- 1 9 Budget and Performance Plan Summary | Budget 2007-08 29 Eligible graduates will receive five $10,000 Eligible graduates Each of the five exemption certificates. dated – the first to be filed certificates will be of graduation, the second in the taxation year the third to be tax year, to be filed the next tax year and so on. filed in the following be permitted to qualify Individuals will not more than once in a under this program benefited lifetime, although individuals who 2006 are from the previous PSGTC prior to Exemption if eligible to earn the Graduate Tax a new eligible they successfully graduate from program. can In addition, the exemption certificate whom it was only be used by the graduate to a parent or issued; it cannot be transferred to portion of each any unused spouse. However, can be carried exemption amount year’s tax forward for a maximum of five additional window years, providing a graduate a 10-year in which to claim the exemption. For further information, please contact: Saskatchewan Finance Affairs Branch and Intergovernmental Taxation 1-800-667-6102 or 306-787-6722 N O I T A R E P O
M A R G or O R P Graduates will be eligible for the new Graduates will be successfully complete an exemption if they program after 2006. approved post-secondary must be at least six months Eligible programs must: in duration and • in a certificate, diploma, or degree; result • to journeypersons. certification provide ensure an effective transition between To PSGTC, this new program and the previous and who individuals who graduated in 2006, be eligible received the $850 PSGTC, will also 2007 to claim the new exemption for the through 2010 tax years. As with the current PSGTC, it is anticipated that most Saskatchewan post-secondary for the educational institutions will apply certificate on Exemption Graduate Tax the behalf of their students, allowing the Government to automatically issue certificates. Graduates from out-of-province will have to schools will also be eligible, but exemption apply to the Government for the certificate. exemption for tax claim the additional To purposes, a graduate must submit a Graduate with their annual Exemption certificate Tax Saskatchewan income tax return. 30 Budget 2007-08 | Budget and Performance Plan Summary system. become fundamentalelements ofthetax objectives, sometaxexpenditureshave of economicactivity. Inpursuingthese of thetaxsystemorpromotingcertaintypes objectives, suchasenhancingthefairness Tax expenditurescan achieveanumberof as directexpenditures. government’s fiscalpositioninthesameway generated byagovernmentandtheyaffect programs, theyreducetheamountofrevenue presented inthesamewayasdirectspending in theoverallrevenueestimatesandarenot While taxexpendituresareusuallyabsorbed senior citizensandsmallbusinesses. businesses, includingfamilies,farmers, assistance toavarietyofindividualsand activity. Taken together, theyprovide to certaintaxpayersortypesof provides specialorpreferentialtreatment preferential taxratesordeferrals.Each exemptions, deductions,taxcredits, expenditures” andincludesuchmeasuresas These reductionsarecommonlycalled“tax reducing thetaxespaidbycertaintaxpayers. some oftheirsocialandeconomicgoalsby is toraiserevenue,governmentsalsoattain Although theprimarypurposeoftaxation Saskatchewan’s Tax Expenditures I I T T N N H H T T E E R R
R R O O A A D D T T U U I I O O C C T T N N I I A A O O L L N N E E
F F O O R R
T T A A X X
E E X X P P E E N N D D I I T T U U R R E E S S deductions areestimated inthispaper. revenue. Theimpactsofseveralthese continue toaffectSaskatchewanincometax Retirement SavingsPlancontributions, such asthedeductionforRegistered the federaldeterminationoftaxableincome, tax purposes.Deductionsthatcontributeto taxable incomeasdefinedforfederal simplified taxstructureapplieddirectlyto surtaxes andalowincomereductionto tax shiftedfromacomplexsystemoftaxes, In 2001,Saskatchewan’s personalincome purchased inbulk. exemption offarm-usegasolinewhen a fuel-colouringprogram,andpartial treatment tofarm-usedieselfuel,through Fuel Tax exemptionprovidestax-free agriculture toSaskatchewan,theProvince’s In recognitionoftheimportance purchased byfamilies. a muchbroaderrangeofgoodsandservices taxes withtheGST, sincethosetaxesapplyto provinces thathaveharmonizedtheirsales Services Tax (GST)andthesalestaxesof is incontrasttothefederalGoodsand consuming thesebasicitems.Thistreatment reducing thetaxespaidbyfamilies clothing andreadingmaterials,thereby natural gas,residentialelectricity, children’s certain basicitemssuchasfood,residential Saskatchewan’s salestaxdoesnotapplyto Budget and Performance Plan Summary | Budget 2007-08 31
A D A N A S C E
R F U O
T I T D N E N E M P N X R E
E Tax expenditures result in the reduction expenditures Tax and have a of revenue collected on a government’s significant impact financial position. tax system, leading to complexity of the effort by both increased administrative taxpayers and governments. distortions in consumer and other For example, the economic behaviour. snack exemption for restaurant meals and for foods provides preferential treatment this category of consumer expenditure. increased compliance costs for both businesses and consumers. V X A O T G The federal government produces a detailed The federal government produces that are part presentation on tax expenditures estimates of the federal tax system. The 2006 projections of federal tax expenditures include data. to the year 2008 as well as historical personal and corporate Since Saskatchewan’s income taxes are based upon the federal definition of taxable income, many of the federal tax expenditures have an impact on revenue. Readers interested Saskatchewan’s in examining the federal government’s presentation of tax expenditures are invited to contact the Finance Canada Distribution Centre in Ottawa or visit the website (and click on “Publications”). www.fin.gc.ca • there is the cost of forgone revenue. First, • tax expenditures may add to the Second, • Third, tax expenditures may create • tax expenditures may create Finally, S T S O C
D E T A I C O S S A While tax expenditures serve important social and economic objectives, the introduction of any tax expenditure results in associated costs. These costs take several forms. The Government of Saskatchewan improved The Government personal income tax system the fairness of its progressive three-rate tax by introducing a income along with structure on taxable non-refundable tax credits distinct provincial personal circumstances of that recognize the family-based credits, including the taxpayer, and educational credits. This disability credits estimates of the revenue paper also provides non- impacts of several of these provincial refundable tax credits. encourage economic growth in key To levies a provincial sectors, Saskatchewan cent on small lower income tax rate of 4.5 per income businesses and a special corporate tax rate on manufacturing and processing as low as (M&P) profits. The M&P rate can be level of 10 per cent, depending upon the business activity in a corporation’s provides Saskatchewan. Saskatchewan also Credit (ITC) to a refundable Investment Tax in assist M&P companies that invest for use qualifying new or used M&P assets in Saskatchewan. 32 Budget 2007-08 | Budget and Performance Plan Summary expenditure estimates: reform andarereflectedinthisyear’s changes continuethesecondyearofthis taxes. EffectiveJuly1,2007,thefollowing a multi-yearreformofprovincialbusiness Commencing in2006,Saskatchewanbegan the PSTratereduction. M&P assetswasreducedinconjunctionwith addition, therateofITCforqualifying 4.5 percent,effectiveJanuary1,2007.In Income Tax (CIT)ratefrom5.0percentto and reducedthesmallbusinessCorporation to fivepercent,effectiveOctober28,2006 Provincial SalesTax (PST)fromsevenpercent The Governmentreducedtherateof this document. of thisinitiativearepresentedelsewherein Post-Secondary GraduateTax Credit.Details Exemption isreplacingtheexistingone-year new, five-year$10,000GraduateTax exemption. Effectiveforthe2007taxyeara introducing anewpersonalincometax post-secondary graduates,theGovernmentis To improveSaskatchewan’s attractivenessfor 2 2 0 0 0 0 7 7
S S A A S S K K A A T T C C H H E E W W A A N N
T T A A X X
E E X X P P E E N N D D I I T T U U R R E E S S collection dataandStatisticsCanadadata. Saskatchewan in2007,calculatedusingtax major taxexpendituresoftheGovernment The followingtablesprovideestimatesofthe estimates thatfollow. September 30,2006.Thisisreflectedinthe based onthe12monthperiodending the nationalrateofinflation2.2percent credits andincometaxbrackets,isindexedto for 2007,includingSaskatchewan’s familytax Saskatchewan’s PersonalIncomeTax system theincomethresholdforsmall • thegeneralCITratewillbereducedfrom • theCCTResourceSurchargerateswillbe • thegeneralCorporationCapitalTax (CCT) • to $450,000. business CITratewillrisefrom$400,000 14 percentto13cent;and, and 1.75percentrespectively; for fourthtieroilandgas)to3.1percent rate) and1.85percent(thespecialrate reduced from3.3percent(thegeneral to 0.15percent; rate willbecutinhalf,from0.3percent Budget and Performance Plan Summary | Budget 2007-08 33 1 2 6.2 0.1 6.9 7.8 .. 22.6 ... $ 110.5 ..... 80.3 ...... 0.2 ...... 90.3 ...... 207.6 ...... 8.6 ...... 7.4 2.0 ...... 25.4 ...... 0.1 ...... 10.1 ...... 25.5 ...... 30.7 ...... 10.3 ...... 31.0 xx aa TT
ee mm oo cc nn II
xx ll xx aa aa TT aa nn – Restaurant meals and snack foods ...... – Basic groceries...... 45.5 – Construction...... – Other......
TT ss
oo ll ss ee rr ee ll 1. Exemption for farm activity ...... 2. Exemption for heating fuels ...... 3. producers...... Exemption for primary 2. 1. and footwear clothing Children’s ...... 2. $ Prescription drugs ...... 3. Electricity ...... 4. Farm machinery and repair parts...... 5. pesticide and seed Fertilizer, ...... 6. Food 4 7. Natural gas ...... 8. Reading materials ...... 9. Services 1. Plan contributions...... Registered Pension 2. $ Savings Plan contributions...... Registered Retirement 3. 59. or like dues Annual union, professional ...... 4. 120.2 Child care expenses...... 5. Moving expenses...... 6. 12.6 Carrying charges...... 7. expenses Allowable employment ...... 8. deduction $500,000 capital gains ...... 14.5 2 ee aa uu 10. Used goods – exemption amounts ...... 11. Direct agents ...... 12. furnaces and boilers...... appliances, Eligible energy efficient 13. telephone services...... Toll-free 4.7 14. Municipal fire trucks ...... 15. 1.8 Mineral exploration equipment...... PP FF SS Exemptions Deductions from Income 2007 Government of Saskatchewan 2007 Government Expenditure Accounts Tax in Millions of Dollars) Expenditures of Tax (Value 34 Budget 2007-08 | Budget and Performance Plan Summary Other SaskatchewanTax Measures Saskatchewan Non-refundableTax Credits C C 6 Charitablecontributionstaxcredit...... 16...... Medicalexpensestaxcredit 15. Caregivertaxcredit...... 14...... Disabilitytaxcredit 13...... Studentloaninteresttaxcredit 12. Tuition andeducationtaxcredit...... 11...... Pensionincometaxcredit 10. .Gnrleepino pt 2,0,0 ...... 10.4 Exemptionforco-operatives,creditunions,familyfarm $ 2...... General exemptionofupto$20,000,000 1. .Rsac n eeomn a rdt...... 10.0 20.0 7.5 ResearchandDevelopmentTax Credit...... 5. InvestmentTax CreditforManufacturingandProcessing...... 4. ManufacturingandProcessingProfitsTax Reduction...... 3. RoyaltyTax Rebate...... 2...... Lowertaxrateforsmallbusiness 1. .Lbu-pnoe etr aia a rdt...... 8.3 ...... PoliticalContributionsTax Credit 4. Employees’Tool Tax Credit...... 3...... Labour-sponsored Venture CapitalTax Credit 2. SaskatchewanSalesTax Credit...... 1. 20.2 52.0 EmploymentInsurancepremiumstaxcredit...... 9...... CanadaPensionPlancontributionstaxcredit 8. 1 ...... Graduatetaxexemption 7. Dependentchildtaxcredit...... 6. Supplementtotheagetaxcredit...... 5. Agetaxcredit...... 4...... Equivalent-to-spousetaxcredit 3. Spousaltaxcredit...... 2. Basicpersonaltaxcredit...... 1. o o r r p p oprtosadisrnecmais...... 5.2 corporations andinsurancecompanies...... o o r r a a t t i i o o n n
C I n a c p o i m t a e l
T T a a x x ...... 39.7 ...... 9.5 ...... 0.8 ...... 28.1 ...... 6.0 ...... 519.7 $ ...... 10.0 ...... 2.9 .... 21.3 .... 41.7 .... . 5.8 ... . 1.3 ... .27.5 .. .34.3 1.3 . 34.0 $ . .15.7 137.8 $ 2.1 Budget and Performance Plan Summary | Budget 2007-08 35 combined lowest overall children, owning its own home, with an children, owning of $75,000. annual family income • of two adults and two dependent a family two families is assumed to The income of the one earning be earned by both spouses, with 40 per cent 60 per cent and the other earning of total family income. Saskatoon The results of this survey show that in compares favourably with other cities Canada, having the surveyed taxes and charges of the 10 cities for each of the representative families. Saskatoon’s There are a number of reasons for with favourable standing in this comparison other Canadian cities. bundle of Saskatchewan has the lowest-cost The basic basic utility services in Canada. charges utility bundle includes the combined service, for auto insurance, basic telephone home heating and electricity. For the purposes of this comparison, 2006 figures for basic utility services are being used as a proxy for the 2007 amounts. favourable Another factor in Saskatchewan’s standing is that housing costs in Saskatoon associated with mortgage payments and property taxes are among the lowest in Canada. Again, 2006 figures are being used as a proxy for the 2007 amounts. However, the estimates incorporate Saskatchewan’s education property tax credit, which was extended for 2007 and will provide an estimated eight per cent reduction to the education portion of property taxes. and Household Charges Charges and Household 2007 Intercity Comparison of Taxes of Taxes Comparison Intercity 2007 utilities and auto insurance. accommodation, with an annual income of $25,000; children, owning its own home, with an annual family income of $50,000; and, A number of factors contribute to the quality A number of factors individuals and families in of life enjoyed by across Canada. For Saskatchewan and to excellent health care, example, access a key part education and social services is of the overall quality of life. important factors that affect other Two quality of life are: • the level of taxation; and, • household costs for rent and mortgages, provincial Calculating the combined cost of is a taxes and typical household charges reliable way to compare the attractiveness of living in different parts of Canada. For the purposes of such a comparison, the total cost of such taxes and household living in charges for representative families has largest city, Saskatoon, Saskatchewan’s been compared with the costs those families would face in other major cities across the country. The provincial taxes and household charges associated with the following family characteristics and income levels have been calculated to provide a representative comparison: • in rental a single person, living • and two dependent a family of two adults 36 Budget 2007-08 | Budget and Performance Plan Summary Total Household Total Provincial Single Personat$25,000Total Income 2007 IntercityComparisonofTaxes andHouseholdCharges Saskatoon: the followingtotalprovincialtaxesin 2007, theserepresentativeprofileswillpay with thosepaidinotherCanadiancities.For total provincialtaxesthatareverycompetitive Saskatchewan individualsandfamiliespay Saskatchewan byaveragefamilies. that approximatethesalestaxpaidin has nosalestax,levieshealthcarepremiums provincial salestaxinCanada.Alberta,which Saskatchewan familiespaythelowest of personalexemptionsmeansthat October 28,2006)andthePST’s broadlist (reduced fromseventofivepercenteffective five percentProvincialSalesTax (PST)rate The combinedeffectofSaskatchewan’s aoieTx2590 205 Gasoline Tax oa 1,1 $13,742 $13,712 9,360 $ Total 9,792 $ Rent lcrct 2 579 328 Electricity eehn 0 283 305 Telephone uoIsrne1502,097 1,510 Auto Insurance Provincial ealSlsTx430 433 Retail SalesTax elhPeim 8 528 389 Health Premiums Tax Creditsand hre 1,3 $12,319 $11,935 Charges 1,423 $ 1,777 $ Taxes noeTx$70$805 $ 750 $ Income Tax eae 0 0 Rebates V a n c o u v e r C a l g a r y S a s $ $ $ $ $ k a 7 1 9 5 1 t , , , , , ( o 6 9 6 9 6 1 5 2 8 3 1 o 9 7 7 5 1 1 5 8 6 9 1 0 6 0 2 9 1 5 2 1 4 n 8 0 5 ) W ,0 1,5 ,9 ,5 1,3 ,6 9,662 $ 8,766 $ $10,931 7,951 $ 8,997 2,845 $ $ $15,451 2,414 $ 8,305 $ 2,493 $ 2,514 $ 2,076 $ 1,785 $ 1,926 $ 1,3 1,3 1,7 1,6 1,2 1,8 $12,507 $11,180 $13,424 $10,465 6,504 $11,073 $ $17,236 6,060 $ $10,231 7,776 $ 5,544 $ 6,888 $ $10,752 6,684 $ ,0 0 ,8 ,7 ,0 ,7 1,699 $ 1,575 $ 1,407 $ 1,476 $ 1,686 $ 903 $ 1,706 $ i n n i 45 12 (597) (142) (425) p 3 7 2 3 3 9 981 699 931 931 820 577 530 1 4 6 0 5 4 165 140 155 107 167 147 115 3 1 8 5 8 3 587 735 587 550 385 616 337 9 6 6 6 0 9 263 293 300 264 268 268 295 8 ,1 ,5 ,9 ,6 ,7 2,308 1,678 2,268 1,593 1,456 3,815 989 e g 030000000 T o r living costsfacingindividualsandfamilies. other Canadiancitieswhenconsideringthe Saskatoon compareveryfavourablywith All ofthesefactorscombinetomake Atwo-incomefamilyearning$75,000will • Atwo-incomefamilyearning$50,000will • singlepersonearning$25,000willpay A • o n t o fourth lowesttaxlevelinCanada. pay $6,396intotalprovincialtaxes,the third lowesttaxlevelinCanada;and, pay $3,382intotalprovincialtaxes,the lowest taxlevelinCanada; $1,979 intotalprovincialtaxes,thefifth M o n t r é a l S J o a i h n n 0000 t H a l i f a x C h a t o r l w o t n t e - S t .
J o h n ’ s Budget and Performance Plan Summary | Budget 2007-08 37 ss ss ’’ ’’ nn nn hh hh oo oo JJ JJ
.. .. tt tt SS SS -- -- ee ee tt tt nn nn tt tt oo oo ww ww ll ll rr rr oo oo tt tt aa aa hh hh CC CC xx xx aa aa ff ff ii ii ll ll aa aa HH HH tt tt nn nn nn nn hh hh ii ii aa aa oo oo JJ JJ SS SS ll ll aa aa éé éé rr rr tt tt nn nn oo oo MM MM 000000 000000 oo oo tt tt nn nn oo oo rr rr oo oo TT TT 075000000 030000000 0000000 0000000 0000000 0000000 gg gg ee ee 230 294 334 214 310 280 330 230 294 334 214 310 280 330 989 3,815 1,456 1,593 2,268 1,678 2,308 989 3,815 1,456 1,593 2,268 1,678 2,308 295 268 268 264 300 293 263 295 268 268 264 300 293 263 536 972 567 842 938 1,098 892 536 972 567 842 938 1,098 892 pp pp (400) (400) ii ii 1,728 1,904 2,617 2,783 2,783 2,240 2,946 1,248 1,375 1,888 2,018 2,018 1,626 2,135 3,245 3,253 2,736 1,800 2,142 2,600 1,200 3,245 3,253 2,736 1,800 2,142 2,600 1,200 1,643 1,789 2,111 2,627 2,219 2,461 2,511 1,643 1,789 2,111 2,627 2,219 2,461 2,511 nn nn nn nn ii ii $ 5,572 $ 3,340 $ 5,857 $ 5,489 $ 5,562 $ 5,726 $ 6,423 $ 2,505 $ 955 $ 1,203 $ 2,661 $ 2,575 $ 2,856 $ 3,104 $ 7,098 $14,959 $ 8,590 $ 5,420 $ 7,153 $ 5,566 $ 5,515 $ 7,098 $14,959 $ 8,590 $ 5,420 $ 7,153 $ 5,566 $ 5,515 $20,936 $31,344 $24,536 $21,032 $23,675 $21,942 $22,388 $17,389 $27,980 $19,153 $17,439 $19,923 $18,458 $18,258 $ 3,583 $ 2,924 $ 3,425 $ 4,893 $ 4,903 $ 4,762 $ 5,569 $ 7,130 $ 6,288 $ 8,808 $ 8,486 $ 8,655 $ 8,246 $ 9,699 $13,806 $25,056 $15,728 $12,546 $15,020 $13,696 $12,689 $13,806 $25,056 $15,728 $12,546 $15,020 $13,696 $12,689 WW WW )) )) 22 22 00 00 00 00 00 00 11 55 00 22 55 55 nn nn 55 55 11 77 66 22 55 55 00 00 44 44 11 11 11 11 11 11 00 00 88 00 00 99 99 66 66 00 00 88 11 00 77 77 33 33 99 88 66 66 22 00 22 22 oo oo 11 11 3 77 3 33 88 88 22 22 99 99 00 00 33 22 22 00 00 33 33 33 33 00 00 66 66 oo oo (( (( ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, ,, tt tt 11 55 22 22 22 77 77 66 33 11 11 99 66 22 22 aa aa 11 11 11 11 kk kk $$ $$ $$ $$ $$ $$ $$ $$ $$ $$ ss ss aa aa SS SS yy yy rr rr aa aa gg gg ll ll aa aa CC CC rr rr ee ee vv vv (570) 0 (570) 0 uu uu oo oo cc cc nn nn aa aa VV VV Rebates 0 0 Rebates 0 0 Income Tax $ 3,125 $ 3,657 Income Tax $ 1,115 $ 1,310 Charges $26,912 $21,505 Taxes $ 6,296 $ 4,893 Charges $26,912 $21,505 Taxes $ 3,878 $ 2,546 Health Premiums 1,296 1,056 Tax Credits and Tax Retail Sales Tax 1,465 0 Gasoline Tax 410 180 Health Premiums 1,296 1,056 Tax Credits and Tax Retail Sales Tax 1,057 0 Provincial Provincial Property Taxes 2,799 1,939 Property Taxes 2,799 1,939 Mortgage Costs $20,585 $15,166 Mortgage Costs $20,585 $15,166 Total $33,208 $26,398 Total $30,790 $24,051 Total Household Total Total Provincial Total Credit Property Tax Gasoline Tax 410 180 2007 Intercity Comparison of Taxes and Household Charges Taxes 2007 Intercity Comparison of Income Family at $75,000 Total Total Household Total Property Tax Credit Property Tax Total Provincial Total 2007 Intercity Comparison of Taxes and Household Charges Comparison of Taxes 2007 Intercity Income Total Family at $50,000 Auto Insurance 1,510 2,097 Auto Insurance 1,510 2,097 Telephone 305 283 Telephone 305 283 Energy Rebate 0 (309) Electricity 546 890 Energy Rebate 0 (309) Electricity 546 890 Home Heating 1,737 1,439 Home Heating 1,737 1,439 38 Budget 2007-08 | Budget and Performance Plan Summary based ontaxableexpenditures ineachprovince. Provincial retailsalestaxes werethenestimated reflect Saskatchewanconsumption patterns. legislation, withtotalexpenditures adjustedto province wasidentifiedfrom theenacting (Statistics Canada).Thesalestaxbaseineach from the expenditure basketsatthetotalincomelevels Retail SalesTax hospital insuranceandmedicalservices. Health Premiums provinces’ incometaxsystems). property taxrebateplansadministeredthrough tax, rentalpaymentsandpropertytaxes(those designed toreducetheimpactofretailsales provincial incometaxcreditsandrebates Tax CreditsandRebates federal incometax. Credit andbythe16.5percentabatementfrom reduced bytheQuébecChildCareExpenseTax Gross QuébecPersonalIncomeTax hasbeen include theCPP/QPPandEIcontributioncredits. and 12).Personalnon-refundablecreditsused expenses fortwodependentchildren(ages6 that thefamilieseachclaim$3,000inchildcare spouses ata60percentto40ratioand assumed thatfamilyincomeisearnedbyboth $50,000 and$75,000incomerespectively. Itis individual with$25,000andtwofamilies Provincial IncomeTax municipal taxesandsurcharges. exclude federalGST, provincialsalestaxand rates forthecomingyear. Theutilityfigures uncertainty ofattemptingtoforecastutility This methodologyhasbeenchosenduetothe ‘known’ utilityratesforthe2006calendaryear. represent acostcomparisonoftheactual home heating,telephoneandautoinsurance) bundle ofbasicutilityservices(electricity, March 9,2007.Householdchargesforthe calendar yearusingknownchangesasof Tax estimatesarecalculatedforthe2007 T T A A X X E E S S
A A N N Survey ofFamilyExpendituresin2004 D D
H H O O U U is baseduponaveragefamily S S are annualpremiumsfor E E H H O O L L is calculatedforan D D refer torefundable
C C H H A A R R G G E E S S
– –
N N O O T T E E S S factored infor allapplicablejurisdictions. of “GoodDriver” discounts/rebateshave been 34 profilesusedtocreatethis index.Theimpact Consumers’ Associationof Canada developed record ataconsistentpoint intime.The same coverage,claims historyanddriving pay ineachjurisdictionifthey hadthesamecar, insurance ratesquotedforwhatthedriverwould Canada. Theindexisbasedontheactual developed bytheConsumers’Associationof developed bySGImodelledaftertheindex Auto Insurance for individualresidences. Telephone and 8,100kWhforthehomeowners. consumption levelof4,584kWhfortherenter Electricity fuel oil. represent theBTUequivalentconsumptionof For CharlottetownandSt.John’s, thefigures consumption levelof3,550m Home Heating on propertytaxnotices. credit programsadministeredbymunicipalities property taxcreditlinerefersto included inthepropertytaxesfigures.The education andlibrarypropertytaxesare Canadian HousePrices. the RoyalLePageThirdQuarter2006 estimated taxesforadetachedbungalow, from Property Taxes closed mortgagerateof6.0percent. being financedover25yearsataone-year House Prices, LePage ThirdQuarter2006 prices foradetachedbungalow, fromtheRoyal Mortgage Costs Rental MarketReport, the CanadaMortgageandHousingCorporation’s apartment rentsforeachmetropolitanarea,from Rent 2,000 litresforeachofthefamilies. of 1,000litresbyasingleperson,and Gasoline Tax is basedonaverageone-bedroom charges arebasedonanannual charges arethebasicservicerates with one-halfofthehomeprice is basedonannualconsumption charges arebasedonanannual is basedonacompositeindex are basedontheaverage are basedonaveragehome October 2006. All provincial,municipal, Survey ofCanadian 3 of naturalgas. Survey of Budget and Performance Plan Summary | Budget 2007-08 39 Crown corporations are responsible for the Crown corporations payments on their debt. principal and interest debt is incurred in the Crown corporation business, primarily for normal course of business investment in infrastructure and development initiatives which provide revenue streams to service the debt. debt is forecast to increase by Total $1.5 million during 2006-07 and $292.3 million in 2007-08. to Government total debt is forecast 2006-07 increase by $47.4 million during and $30.2 million in 2007-08. to Crown corporation total debt is forecast then drop by $45.9 million during 2006-07 2007-08, increase by $262.1 million during utility due primarily to increases for the Crown corporations. T B 2007-08 Borrowing and Debt Borrowing 2007-08 E D
D N U F
E U N E less V E R
L A R E corporations and others that the Province corporations and others that the unable has promised to repay if they are to do so. to lenders; which has been set aside for the repayment of debt. N E G Total debt, or public debt plus guaranteed Total the debt, is used by most members of financial community when analyzing creditworthiness. • Guaranteed Debt – the debt of Crown in this budget paper. debt is discussed Total The General Revenue Fund (GRF) borrows for The General Revenue Crown corporations. government and Public debt as reported in the Province’s of: financial statements is comprised • Debt – the amount of money owed Gross • Sinking Funds – the amount of money 40 Budget 2007-08 | Budget and Performance Plan Summary A A A A T T T T O O O O s s s s
a a a a (Millions ofDollars) urnedDb 534. 45.2 7,197.2 40.5 $ (797.2) 7,249.3 $ 0.9 (904.6) 45.3 7,274.7 $ (1,023.5) 0.5 3,631.0 (307.9) $ 3,585.5 $ (352.6) 0.5 3,847.6 $ (360.5) Guaranteed Debt Public Debt Sinking Funds Guaranteed Debt Public Debt Sinking Funds rs et$8282$8139$7,994.4 $ 8,153.9 $ 8,298.2 $ Gross Debt rs et$4281$3981$3,938.9 $ 3,938.1 $ 4,208.1 $ Gross Debt T T T T T G C C G o A A A A t t t t r r o Billions of Dollars o
o o t M M M M L L L L v v a w w
e e l 10 12 14 a a a a D D D D
n n r r 0 2 4 6 8 D r r r r n n
E E E E c c c c e C C m m h h h h B B B B b o o
T T T T e e 3 3 3 3 t r r
n n 1 1 1 1 p p O O O O t t o o
F F F F T D r r $11.7 2004 $8.1 $3. a o a
e T T T T t t t b i i a H H H H 6 o o t l E E E E n n
D
T D G G G G e o b e E E E E t b t a N N N N t l G
E E E E D overnment Total De R R R R e A A A A b L L L L t $11.2 2005 $7. $3.
R R R R E E E E 6 6 V V V V E E E E N N N N U U U U E E E E
b F F F F t U U U U N N N N $10.9 200 $7.3 $3. D D D D 6 6 Crown CorporationTotal De E $ $ $ s 1 t i 1 7 3 m , , , $10.9 2007 1 73$7.3 $7.3 $3. 3 8 2 a 6 2 4 0 t 8 0 8 6 e 0 . . . 8 d 0 1 1 $ $ $ F 1 b o 7 3 0 t , , r , 2 5 8 e 2 8 8 7 c 0 $11.2 2008 9 6 $3.9 5 a 0 . . s . 7 8 0 8 t $ $ $ 1 0 7 3 A , , , 8 2 6 c 2 7 4 3 t 0 u 4 2 1 0 a . . . 6 3 4 9 l Budget and Performance Plan Summary | Budget 2007-08 41 DP G % 6 2008 8.2% 23.8% 15. t as a % of b .0% 6 2007 7.9% 23.9% 1 Crown Corporation Total De Crown Corporation Total 6 .8% 6 200 8.4% 25.2% G DP G N I W O R P R D t as a % of O 2005 8.9% b G 27.9%
B F
O D
N % U
F A
E S U A
N T 2004 E 9.8% 31.9% 22.1% 19.0% 1 overnment Total De overnment Total B V G E 1 E D 3
R
L h c L A r 5 T A a 35 30 25 20 15 10 O R
M
T
E Cent Per t N F a
E R s G G A The Province borrows through the sale of The Province borrows through the through the securities in capital markets and sale of savings bonds to Saskatchewan residents. 2007-08 borrowing The Province’s requirements are estimated to be $1,286.5 million, compared to forecast requirements of $1,495.1 million in 2006-07. Borrowing requirements for government in 2007-08, estimated to be $563.3 million (2006-07 forecast – $1,286.2 million), are to refinance maturing debt ($419.0 million) and other cash requirements. Borrowing requirements for Crown corporations in 2007-08 are estimated to be $723.2 million (2006-07 forecast – $208.9 million). 42 Budget 2007-08 | Budget and Performance Plan Summary 4. 1. 3. 2. 5. ( S C C I u n The amount by which government total debt will change may be higher or lower than the than lower or higher be may change will debt total government which by amount The a a surplus reported under the accrual basis of accounting. of basis accrual the under reported surplus r c s s of cashinflowsandoutflowsfromloan,investmentotheractivitiestodeterminethe 2. 5. Other 3. Adjustmentto 1. 4. eeusadexpenditurestodeterminethecashprovidedfromoperations; revenues and c A A A A A The difference between the surplus and the amount by which government total debt will debt total government which by amount the and surplus the between difference The p change is reconciled by: by: reconciled is change h h r a d d d d d e l
s u C C C A d j d j P d d d a h u u s r ptlAqiiin 276 (298.3) (297.6) apital Acquisitions ag nGaate et(.)4.7 (4.8) hange inGuaranteedDebt ag nSnigFns189107.4 118.9 hange inSinkingFunds s i i i v
s s n n o n e a ( a t t o g g g v ) v i i i
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a i a d c o t n g g
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a i i t t g t o o s c i i a u o o v v t to recognizetheamountandtimingofnon-cash l a i
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e t S S i h e e e s u u i e n n d 50$70.1 $ 75.0 $ 55$160.8 $ 85.5 $ 143 (159.5) $ (144.3) $ $ t r r r i t t
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to recognizetheamount F 2 o 0 r 0 e ( 6 4 c - a 7 0 s . 7 4 t ) Budget and Performance Plan Summary | Budget 2007-08 43 ll tt 11 77 66 77 .. .. ss aa 00 00 88 88 aa uu -- 00 tt cc 00 22 66 22 cc ee 88 22 00 ,, rr AA 00 11 oo 22 11 FF $$ $$ tt 44 44 77 88 dd .. ss .. 00 00 ee aa 00 00 -- tt 00 cc 55 44 77 aa 22 ee 11 88 00 ,, rr mm 00 ii 11 oo tt 22 11 FF ss $$ $$ EE 66 dd 88 .. 00 ee 88 tt 00 11 aa 22 44 ,, mm 11 ii tt 11 ss $$ EE borrowing directly or by guaranteeing the borrowing directly or by guaranteeing for debt of others. The GRF is not responsible this other debt. The Summary Statement of Debt on page 60 calculates the total debt of government entities by listing both the GRF debt and the debt to other entities. denominated debt as at March 31, 2007 and denominated debt March 31, 2008. point increase in interest A one percentage from levels assumed in rates for a full year increase the estimated cost the Budget would debt in 2007-08 by of servicing government million. approximately $10.8 the A one cent change in the value of U.S. dollar Canadian dollar compared to the would from the level assumed in the Budget of change the estimated cost in 2007-08 servicing government debt by approximately $0.3 million. T B E D
T N E T tt bb B T M ee E B N DD E D
R
tt orporations $ 3,848.1 $ 3,586.0 $ 3,631.9 ss D F bb ss E
C ee oo F V O rr
T DD O
O GG T
B ff
E T G oo gg N rown
D nn N tt E C ii
G E nn cc ii M G ee N vv M I E rr N mm E I ee C T ee I T SS tt C A
I V A aa ff T tt V T oo 1 R S SS
R S 3
E tt
E orporation Debt $ 280.4 $ 267.7 yy ss S Y h rr Y S C
oo c
aa R R r F CC F
a A mm A ll O O aa
M mm tt M M
T T rown uu t oo S S SS TT GRF Total Debt for GRF Total GRF Total Debt for GovernmentGRF Total GRF Debt Total Other Debt 7,320.0 7,289.8 7,242.4 $ 11,168.1 $10,875.8 $10,874.3 250.5 274.6 353.8 (Millions of Dollars) C (Millions of Dollars) Government Debt 560.0 541.0 a M M
O O s U U S C S C A GRF debt includes all debt borrowed or GRF debt includes all debt borrowed guaranteed by the GRF for either government purposes or the purposes of certain Crown corporations. Some Crown corporations and other organizations have additional obligations to other entities, either by In addition to interest payments, debt In addition to interest all charges related to servicing costs include such as the amortization debt the Province’s commissions; and of premiums, discounts, foreign currency debt that gains or losses on in the value of the result from a change Canadian dollar. estimates The 2007-08 debt servicing cost and are based on 4.5 per cent short-term An 5.5 per cent long-term interest rates. $1.00 exchange rate of $0.8568 U.S. per U.S. dollar Canadian has been used to convert 44 Budget 2007-08 | Budget and Performance Plan Summary Fiscal StabilizationFund 2 2 F F 2007-08 GRFrevenue. equivalent of4.8percentprojected year-end balanceof$377.6million,orthe transferred totheGRFin2007-08,leavinga to theFSFin2004-05and2005-06willbe Most ofthe$521.5millionthatwasadded forecast tobezero. to $887.5million.The2006-07transferis 2004-05 and2005-06tobringthebalance $521.5 millionwasaddedtotheFSFin “pre-fund” multi-yearcost-sharedprograms, the partoffederalgovernmentto three years,andanincreasingtendencyon out in-yearrevenueincreasesin2004-05over corresponding relianceontheFSFtospread high oilpricesoverthepastthreeyears,a However, largelyasaresultofextraordinarily $366.0 million. the FSFbalancehadbeenreducedto Revenue Fund(GRF).Bytheendof2003-04, $775.0 milliontransferfromtheGeneral The FSFwasinitiallyestablishedwitha the accomplishmentoflong-termobjectives. the Provincefromyeartoandfacilitate in 2000-01tostabilizethefiscalpositionof The FiscalStabilizationFund(FSF)wascreated I I 0 0 S S 0 0 C C Transfer from/(to)GRF (Millions ofDollars) pnn aac 7. 9. 7. 6. 4. 8. 887.5 $ 887.5 $ 748.5 $ 366.0 $ 577.0 $ 495.0 $ 775.0 $ – $ Opening Balance * Y 0 0 e A A - - Actual 0 0 a L L 1 1 r
-
S S e t t o o n T T
A A d 2 2
B B 0 0 B 0 0 I I a L L 7 7 l I I a - - Z Z 0 0 n A A 8 8 c T T e I I O O N N
F F $ 2 U U 0 7. 200 20(1.)32519000(509.9) 0.0 139.0 382.5 (211.0) 82.0 (280.0) 775.0 7 0 N N 7 0 D D 5 - 0 .
0 1 B B * A A L L $ 2 A A 0 4 0 N N 9 1 5 C C - 0 . 0 2 E E * S S $ 2 0 5 0 7 2 7 - 0 . 0 3 * $ 2 surplus. the GRFin2007-08ensuresa$75million of the$509.9milliontransferfromFSFto The remaining82percent,or$419.7million, theunexpendedportionof2005-06 • theunexpendedportionof2005-06 • the2007-08portionof2004 • thefinalyearoffundingfor2004-05 • GRF in2007-08relatesto: $509.9 milliontransferfromtheFSFto About 18percent,or$90.2million,ofthe 0 3 0 6 3 6 - ($9.5 million). federal gastaxrevenue-sharinginitiative child care($15.2million);and, federal fundingforearlylearningand ($36.5 million); federal Wait Times ReductionTransfer mid-year commitments($29.0million); 0 . 0 4 * $ 2 0 7 0 4 4 8 - 0 . 5 5 * $ 2 0 8 0 8 5 7 - 0 . 5 6 * $ 2 0 8 0 8 6 - 7 0 . 7 5 $ 2 0 3 0 7 7 - 7 0 . 8 6 Budget and Performance Plan Summaryt | Budget 2007-08 45 99 00 .. 00 00 --
88 L 00 00 A 22 P I S $$ C I M N A R U G M - O 88 44 L .. 00 R -- 33 A P 77 44 I
00 C E 00 N R 22 I U $$ V T O C R U P R - L T S A 77 44 .. A 00 R -- 33 R E 66 88 F 00 D 00 N E I 22 F At third quarter 2006-07, it was decided to At third quarter 2006-07 transfer $14.5 million of unexpended funding in the Department of Government Relations for federal-provincial-municipal the infrastructure programs (including [MRIF], Municipal Rural Infrastructure Fund Fund the Canada Strategic Infrastructure [CSIF] and the Canada-Saskatchewan the SIF. Infrastructure Program [CSIP]) into will be This will ensure these resources available in the future when approved are municipal infrastructure projects than undertaken and completed, rather this allowing the funding to lapse. Of to be used amount, $5.5 million is expected million in 2007-08 and the remaining $9.0 is expected to be used in 2008-09. $$ M A R G O M R A P
R mm S aa G rr E I O gg T R oo I rr P
PP
N rr
S ss oo U ff E ee I
ii tt M T nn ii I Saskatchewan Infrastructure Fund Infrastructure Saskatchewan oo nn ii M N tt uu aa O U mm cc C M oo
mm ll ll oo G M AA CC
N
O I gg gg C nn D nn
ii ii L nn I dd G ii ll ii aa N U I uu mm B BB D
ee L E RR Transfer from GRF to SIFTransfer $ 100.0 $ – $ – Transfer (to) GRF for Building CommunitiesTransfer (16.6) (40.0) (43.4) (Millions of Dollars) I H U T An initial cash injection of $100.0 million An initial cash injection of $100.0 to be used was made to the SIF from the GRF over three years to assist Saskatchewan and communities in building cultural the Building recreational infrastructure under by the Communities program administered and Recreation. Department of Culture, Youth $20.0 million While it was initially anticipated 2006-07 would be allocated to projects in and $40.0 million would be allocated in each of 2007-08 and 2008-09 under the Building Communities program, the current forecast projects 2006-07 spending to be $16.6 million. The remaining $3.4 million initially allocated to 2006-07 will remain in the SIF for future use. The Saskatchewan Infrastructure Fund (SIF) The Saskatchewan at mid-year 2006-07 to was established of public infrastructure. support the provision attached to All transfers into the SIF are to be out of the SIF a specific purpose. All transfers Fund (GRF) are to flow to the General Revenue legislated and then be allocated through a appropriation. B FEDERAL-PROVINCIAL-MUNICIPAL INFRASTRUCTURE
(Millions of Dollars) 2006-07 2007-08 2008-09 Transfer from/(to) GRF for MRIF $ 9.0 $ – $ (9.0) Transfer from/(to) GRF for CSIF 4.5 (4.5) – Transfer from/(to) GRF for CSIP 1.0 (1.0) – Remaining Allocation for Municipal Infrastructure $ 14.5 $ 9.0 $ 0.0
SIF TRANSACTIONS • it is expected the remaining $43.4 million for the Building Communities program will It is expected a total of $114.5 million will be transferred from the SIF to the GRF in be transferred from the GRF to the SIF in 2008-09, as will the remaining $9.0 million 2006-07. Of this total: for municipal infrastructure, exhausting the SIF. • $16.6 million will be transferred back from the SIF to the GRF in 2006-07 for the Building Communities program, leaving a 2006-07 year-end balance of $97.9 million in the SIF;
• $40.0 million will be transferred from the SIF to the GRF in 2007-08 for the Building Communities program, and $5.5 million will be transferred from the SIF to the GRF for municipal infrastructure, leaving a 2007-08 year-end balance of $52.4 million in the SIF; and,
SASKATCHEWAN INFRASTRUCTURE FUND TRANSACTIONS
(Millions of Dollars) 2006-07 2007-08 2008-09 Opening Balance $ – $ 97.9 $ 52.4 Transfer from/(to) GRF for Building Communities 83.4 (40.0) (43.4) Transfer from/(to) GRF for Municipal Infrastructure 14.5 (5.5) (9.0) Year-end Balance $ 97.9 $ 52.4 $ 0.0 | Budget and Performance Plan Summary Budget 2007-08 46 2007–2008 Saskatchewan Provincial Budget
General Revenue Fund (GRF) Budget Details 48 Budget 2007-08 | Budget and Performance Plan Summary Operating Surplus...... Statement of Operations and Accumulated Deficit Accumulated and Operations of Statement General RevenueFund e et einn fYa ...... Net Debt,BeginningofYear Amortization ofCapitalAssets...... Transfer of Assets fromSaskatchewanWater Corporation...... Transfer from (to)SaskatchewanInfrastructureFund ...... Pre-Transfer Balance Debt Servicing...... Operating Expense Surplus fortheYear...... Transfer from (to)FiscalStabilizationFund...... Ices)Dces nNtDb rmOeain ...... (Increase) DecreaseinNet Debt fromOperations Accumulated Deficit,BeginningofYear...... Revenue...... Annual Surplus...... Acquisition ofCapitalAssets...... N A Statement of Change in Net Debt Net in Change of Statement General RevenueFund c e c t
u D m e u b l t a ,
t E e n d d
D
o e f f
i Y c i e t a ,
r E n d
o f
Y e a r $ $ $ $ $ $ $ $ ( ( ( ( E E 4 6 4 6 7 7 s s ( ( ( , , , , , , 2 2 t t 5 4 2 1 7 2 7 7 8 1 5 ( i i 0 0 7 6 8 9 4 1 2 8 8 6 5 0 7 4 7 7 m m 0 0 1 0 0 7 8 9 0 3 2 9 1 9 9 5 5 5 a a 7 7 , , , , , , , , , , , , , , , , 7 3 1 8 5 5 0 0 4 0 4 6 8 9 8 4 t t - - e e 3 0 5 0 0 7 7 5 0 0 8 0 3 4 7 5 7 3 0 0 5 8 8 8 d d 0 2 0 0 8 0 0 3 2 0 2 8 – (thousands ofdollars) (thousands ofdollars) ) ) ) ) ) ) ) ) 42382 (4,220,893) $ (4,223,872) $ 0,7 577,908 $ 708,973 $ 6,7 26,908 $ 167,973 $ 009$101,908 $ 70,059 $ 7,0)$4,803 $ (75,004) $ ,8,0 7,727,200 $ 8,389,300 $ 67090 (6,631,143) $ (6,710,950) $ 009$101,908 $ 70,059 $ 66596 (6,635,946) (6,635,946) 43281 (4,322,801) (4,322,801) ,8,2 7,149,292 7,680,327 5100 (551,000) (541,000) 2825 (241,001) (298,255) F F 2 2 5,9 143,896 153,192 9,1)– (97,914) o o 0 0 880– 28,870 r r 0 0 e e 6 6 c c - - a a 0 0 s s 7 7 75,000 – t t E E s s 2 2 t t i i 0 0 m m 0 0 a a 6 6 t t - - e e 0 0 d d 7 7 General Revenue Fund
Statement of Cash Flow
(thousands of dollars)
Estimated Forecast Estimated 2007-08 2006-07 2006-07
Operating Activities
Surplus for the Year...... $ 75,000 $ 70,059 $ 101,908 Add Non-cash Items: Amortization of Foreign Exchange Loss ...... 3,204 3,204 1,741 Amortization of Capital Assets ...... 151,155 153,192 143,896 Loss on Loans and Investments...... 517 396 1,846 Net Change in Non-cash Operating Activities ...... (93,413) (21,348) (137,438) Earnings Retained in Sinking Funds ...... (50,939) (44,661) (39,733) Cash Provided by (used for) Operating Activities $ 85,524 $ 160,842 $ 72,220
Capital Activities
Acquisition of Capital Assets...... $ (297,643) $ (298,255) $ (241,001) Cash Provided by (used for) Capital Activities $ (297,643) $ (298,255) $ (241,001)
Lending and Investing Activities
Receipts ...... $ 572,735 $ 307,106 $ 315,900 Disbursements...... (908,294) (361,965) (538,150) Cash Provided by (used for) Lending and Investing Activities $ (335,559) $ (54,859) $ (222,250)
Financing Activities
Borrowing ...... $ 1,286,456 $ 1,495,050 $ 1,492,568
Debt Repayment...... (872,178) (1,336,322) (1,282,873) Budget and Performance Plan Summary | Increase (Decrease) in Deposits Held...... – (860,262) (75,000) Cash Provided by (used for) Financing Activities $ 414,278 $ (701,534) $ 134,695 (Decrease) Increase in Cash $ (133,400) $ (893,806) $ (256,336) Budget 2007-08
49 50 Budget 2007-08 | Budget and Performance Plan Summary Natural Gas...... Schedule of Revenue of Schedule General RevenueFund Other ...... Other Revenue ...... Other Transfers from CrownEntities Other EnterprisesandFunds...... Non-Renewable Resources ...... Other Taxes ...... Other Fines, ForfeitsandPenalties...... Oil neet rmu,Dson n xhne...... Interest, Premium,DiscountandExchange ...... Potash rw netet oprto fSsacea ...... Crown InvestmentsCorporationofSaskatchewan oo eil es...... Motor Vehicle Fees Saskatchewan LiquorandGamingAuthority...... Corporation Capital...... Other LicencesandPermits...... Canada HealthTransfer...... Corporation Income...... ae,Srie n evc es...... Sales, ServicesandServiceFees aaaSca Tase ...... Canada SocialTransfer ae ...... Sales ...... Fuel Transfers fromOtherGovernments...... qaiainPyet ...... Equalization Payments Tobacco...... Individual Income T N R T O T O T a r r r e o t w a a a x h v n n n n e n e e - s s s s - n R r f f f S
e e e u e R o r r r n e e s s s u e
v r f f f w c e r r r e o o o n a
m m m u b R e l
e
e C t t v
h h r e R o e e n e
w u s G G o n e o o u
v v E r e e c n r r e t n n s i t m m i e e e s n n t t
o o f f
C C a a n n a a d d a a $ $ $ $ $ $ $ $ $ $ $ $ E 7 1 4 6 1 1 s , , , , , , 2 t 8 5 1 5 2 6 1 3 5 1 1 8 3 2 1 3 4 7 4 3 8 3 1 i 0 6 1 0 9 7 8 8 7 9 7 0 9 2 0 3 5 3 6 6 3 7 8 7 1 4 9 1 7 3 8 1 m 0 9 5 4 0 8 5 9 3 6 9 5 5 4 0 4 0 0 0 0 7 4 0 8 7 6 6 0 5 4 4 7 a 7 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , 3 4 9 8 5 0 9 7 8 9 2 5 8 0 9 7 7 7 0 9 5 3 3 0 1 1 2 3 6 6 1 t - e 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8 d 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 – (thousands ofdollars) ,8,0 7,727,200 $ 8,389,300 $ ,4,0 1,511,800 $ 1,643,700 $ 4,010,900 $ 4,385,800 $ ,8,0 6,403,600 $ 6,989,200 $ 7,0 186,000 $ 179,600 $ 9,0 344,300 $ 390,600 $ 536,600 $ 569,100 $ 020$10,200 $ 10,200 $ 6,0 160,000 $ 167,000 $ ,0,0 1,323,600 $ 1,400,100 $ 8,0 427,100 $ 480,000 $ 1,0 760,800 $ 719,100 $ ,4,0 989,800 1,246,100 ,6,0 1,494,000 1,666,400 ,2,0 1,097,000 1,028,000 F 2 4,0 214,400 343,300 6,0 279,100 166,500 3,0 128,700 132,700 5,0 334,100 352,400 5,0 361,400 553,100 2,0 348,400 325,000 7,0 371,300 376,600 8,0 165,400 187,000 o 0 00016,000 20,000 42,500 49,700 56,900 51,500 94,700 94,700 94053,400 89,400 41035,600 34,100 69084,000 86,900 73016,400 17,300 270– 12,700 r 0 e 6 c - a 0 s 7 t E s 2 t i 0 m 0 a 6 t - e 0 d 7 General Revenue Fund
Schedule of Expense
(thousands of dollars)
Estimated Forecast Estimated 2007-08 2006-07 2006-07
Executive Branch of Government
Advanced Education and Employment ...... $ 669,351 $ 694,825 $ 606,355 Agriculture and Food ...... 301,107 369,000 264,936 Community Resources ...... 625,209 712,080 602,415 Corrections and Public Safety ...... 142,605 163,309 129,612 Culture, Youth and Recreation ...... 90,193 70,031 47,921 Environment...... 193,335 192,189 178,389 Executive Council...... 9,302 9,314 8,909 Finance ...... 43,488 40,759 40,759 – Public Service Pensions and Benefits...... 243,860 224,011 219,103 First Nations and Métis Relations ...... 51,694 61,227 51,095 Forestry Secretariat...... 2,000 1,350 1,350 Government Relations...... 252,464 212,255 199,407 Health ...... 3,446,123 3,225,983 3,178,583 Highways and Transportation...... 334,788 315,960 288,930 Industry and Resources...... 82,331 69,717 91,493 Information Technology Office...... 5,136 6,836 5,508 Justice ...... 246,213 238,078 231,945 Labour ...... 16,830 15,680 15,680 Learning ...... 809,204 804,883 767,470 – Teachers’ Pensions and Benefits ...... 135,783 159,866 138,749 Northern Affairs...... 6,038 5,716 5,716 Property Management ...... 11,848 13,136 9,942 Public Service Commission ...... 16,741 15,979 14,443 Regional Economic and Co-operative Development ...... 12,113 11,453 11,151 Saskatchewan Research Council ...... 8,992 8,446 8,446 SaskEnergy Incorporated...... – 7,000 – Budget and Performance Plan Summary | Legislative Branch of Government
Chief Electoral Officer ...... 1,174 1,263 807 Children’s Advocate...... 1,450 1,295 1,295 Conflict of Interest Commissioner ...... 138 138 138 Information and Privacy Commissioner ...... 675 599 599 Legislative Assembly...... 21,105 20,070 20,267 Ombudsman...... 1,935 1,816 1,816 Provincial Auditor...... 6,505 6,063 6,063
Operating Expense ...... $ 7,789,730 $ 7,680,327 $ 7,149,292 Budget 2007-08 Debt Servicing...... 560,000 541,000 551,000 Expense $ 8,349,730 $ 8,221,327 $ 7,700,292
51 52 Budget 2007-08 | Budget and Performance Plan Summary Crown Corporation oenet...... ,4,4 (1,023,573) – 8,343,547 Government ...... 45,809 (1,023,573) ...... Guaranteed Debt (43,509) 8,298,206 Government ...... 723,632 ...... SaskEnergy Incorporated Saskatchewan Telecommunications Saskatchewan Power rw oprto ...... ,0,0 (360,488) $ 4,208,108 $ ...... Crown Corporation Information ServicesCorporation Saskatchewan netetSsacea n..399– 3,919 Investment SaskatchewanInc... Municipal Financing Saskatchewan Crop Saskatchewan Housing Saskatchewan Opportunities P T T C Schedule of Debt of Schedule General RevenueFund As at March 31 March at As o o u r Holding Corporation Corporation oprto ...... 26967(188,383) 2,669,697 ...... Corporation fSsacea ...... $1,0 – $ 19,901 $ ...... of Saskatchewan ae oprto...... 3,7 (501) 39,575 Water Corporation...... Corporation ofSaskatchewan.. nuac oprto ..... 0,0 (19,350) 100,000 ...... Insurance Corporation oprto ...... 5,0 – 51,700 ...... Corporation o t t b a a w l l l i
c n D D
D e e C e b b o b t t r t p o r ...... a t i o n ...... $42856$(360,488) $ 4,208,576 $ ...... 9,7 (58,526) 495,879 ...... 1,5,2 (1,384,061) $ $12,552,123 (1,384,061) $ $12,552,123 1,0,1 (1,384,061) $ $12,506,314 G E r s o t s i 081(469) 20,801 304(49,750) 83,004 s m
D 2 a 0 t e e 0 b 8 d t S i n E k i s n t g i m
F 2 a u 0 t n e 0 (thousands ofdollars) d 8 d s $ $ $ $ $ $ 1 1 1 E 1 1 1 3 7 7 2 3 s , , , , , , , , t 1 1 1 8 3 2 4 8 6 4 i 6 6 2 4 1 7 8 4 8 3 4 1 3 2 8 3 5 m 8 8 2 8 9 4 1 7 0 7 5 9 9 0 0 3 1 3 D 2 a , , , , , , , , , , , , , , , , , , 0 0 2 0 9 6 3 6 1 3 8 9 0 3 6 2 7 9 0 e t e 6 6 8 5 7 3 1 2 2 5 0 0 7 3 5 5 0 1 0 b 8 2 2 3 4 3 4 0 9 3 3 1 8 4 9 d 2 0 4 0 t ,8,9 $ 3,585,994 $ 1,7,6 10, $ $10,875,767 10, $ $10,875,767 1,3,9 10, $ $10,834,795 ,8,7 $ 3,585,474 $ 341$26,500 $ 23,401 $ 7,289,773 7,249,321 2,311,449 F 693,916 310,966 115,400 o 09247,941 40,972 68536,961 36,825 09911,156 10,919 10612,527 21,026 65238,865 36,572 50029,800 25,000 r e D 2 c 0 e a 0 b s 7 t t E 3,762,916 7,198,061 7,151,041 3,761,995 2,313,024 s t 960,977 960,977 913,036 698,935 474,227 120,000 i m D 2 a 0 e t e 0 b 7 d t Budget and Performance Plan Summary | Budget 2007-08 53 77 dd 88 00 66 ee -- tt 55 ,, 66 aa 22 00 mm 99 00 ii 44 tt 22 ,, ss 11 EE $$ tt 77 00 ss 00 55 aa -- 00 cc ,, 66 ee 4,700 4,600 2,100 165,000 8,000 – 55 00 rr 99 22,000 26,800 55,200 58,200 00 oo 44 100,000 100,000 22 FF ,, 11 1,286,149 1,117,968 $$ $ 16,901 $ 20,000 $ 208,901 $ 374,600 (thousands of dollars) –– –– 00 00 00 00 00 66 dd 88 00 66 00 00 00 00 00 00 00 55 55 ee -- tt 88 77 22 44 11 22 22 44 ,, ,, ,, ,, ,, ,, ,, ,, 77 aa 44 66 00 66 55 33 33 66 00 mm 22 77 44 77 22 66 88 00 ii 11 44 77 55 22 tt 22 ,, ss 11 EE $$ $$ $$ Schedule of Borrowing Requirements General Revenue Fund Revenue General ss nn oo ii tt aa rr oo pp rr ss oo tt CC nn
ee nn mm ww ee rr oo ii rr uu CC
qq rr ee oo RR ff
gg gg nn nn ii ii ww ww oo oo rr rr rr rr oo oo BB BB Saskatchewan Water Corporation...... Saskatchewan Water Saskatchewan Telecommunications Holding CorporationSaskatchewan Telecommunications .. Saskatchewan Power Corporation ...... Saskatchewan Opportunities Corporation...... Information Services Corporation of SaskatchewanInformation Services Corporation of ...... Municipal Financing Corporation of SaskatchewanMunicipal Financing Corporation of ...... Borrowing for Crown Corporations ...... Borrowing for Government ...... SaskEnergy Incorporated...... 54 Budget 2007-08 | Budget and Performance Plan Summary The PowerCorporationAct The SaskatchewanTelecommunications Act The SaskatchewanDevelopmentFundAct Other GuaranteedDebt ...... The StudentAssistanceandAidFundAct Guaranteed DebtforCrownCorporations The FarmFinancialStabilityAct The EconomicandCo-operativeDevelopmentAct The NewGradeEnergyInc.Act The HousingandSpecialCareHomesAct G O G Schedule of Guaranteed Debt Guaranteed of Schedule General RevenueFund As at March 31 March at As u t u h Saskatchewan PowerSavingsBonds urnedIvsmns...... Guaranteed Investments eeod mtrd ...... TeleBonds (matured) ree soitosLa urnes...... Breeder AssociationsLoanGuarantees ...... Vanguard Inc. Feeder AssociationsLoanGuarantees...... Feedlot ConstructionLoanGuarantees...... edo qiyLa urnes...... Feedlot EquityLoanGuarantees ...... Individual FeedlotLoanGuarantees Enhanced FeederLoanGuarantees...... NewGrade Energy Inc...... NewGrade EnergyInc. Senior Citizens’Housing...... a a e r r a r a eisIt eisVI(aue)...... Series ItoVII(matured)
n n G t t e u e e e a d d r a
D n D t e e e b b e t t d
f
o D r e
C b r t o w n
C o r p o r a t i o n s $ $ $ $ $ E s t i 4 4 2 1 m 5 5 0 5 1 6 1 2 2 a , , , , , , , , 3 8 0 0 2 0 0 0 0 3 1 4 t e 4 0 0 0 5 0 0 0 0 5 0 6 1 6 2 8 0 2 0 8 1 8 d 9 0 0 0 0 0 0 9 – – (thousands ofdollars) $20$20 $520$921 042$47,020 $ 40,452 $ 092$47,941 $ 40,972 $ ,5 1,250 $ 1,250 $ F o 60019,245 16,000 10013,469 11,000 r ,0 2,906 4,000 ,0 3,000 2,000 ,8 6,041 6,088 e 2 c 0 758 400 0 143 100 0 a 0 277 82 232 32 s 7 1,000 – –– t E s t i m 2 a 0 t e 0 7 d 2007–2008 Saskatchewan Provincial Budget
Summary Financial Budget Details 56 Budget 2007-08 | Budget and Performance Plan Summary te raiain...... 821. 0.4 (10.2) (0.7) (2.5) 0.3 36.4 (1.4) 15.0 0.8 30.2 4.6 (0.2) 0.3 31.1 (1.4) 72.1 0.2 8.2 (3.2) (2.1) 16.1 (1.3) (6.5) (0.1) 33.7 0.5 – (2.7) ...... Interagency AccountingAdjustments – 2.6 (1.1) 0.2 Other Organizations...... 334.1 ...... Saskatchewan Watershed Authority 23.4 18.1 Saskatchewan StudentAidFund...... – 32.5 (1.1) ...... Saskatchewan ResearchCouncil 1.5 Saskatchewan InstituteofAppliedScienceandTechnology.. (3.3) 353.2 ...... 2.9 Saskatchewan HousingCorporation 0.3 ...... Saskatchewan HealthInformationNetwork (0.1) Saskatchewan GamingCorporation...... (2.2) ...... Saskatchewan CommunicationsNetworkCorporation 350.7 Saskatchewan CancerAgency...... 0.5 ...... Saskatchewan AgriculturalStabilizationFund 2.9 ...... Regional HealthAuthorities ...... Regional Colleges ...... Liquor andGamingAuthority ...... Community InitiativesFund ...... Agricultural CreditCorporationofSaskatchewan te ...... 10 (1.8) (160.0) (1.0) (167.0) (200.0) 0.2 ...... Dividends includedinGRF surplus ...... Other (365.2) (387.1) Crown InvestmentsCorporation(non-consolidated) (383.3) ...... Dividends includedinGRFsurplus .. Adjustment toaccountforpensioncostsonanaccrualbasis akthwnWtrCroain...... 04 . (0.5) (0.5) 70.5 4.9 103.0 0.4 35.0 (0.4) 78.4 5.4 72.5 39.0 4.9 93.0 (0.4) 52.1 (0.5) 53.2 61.4 8.7 69.6 135.0 4.4 Saskatchewan Water Corporation...... 37.8 Saskatchewan Transportation Company...... 69.1 .. Saskatchewan Telecommunications Holding Corporation 27.8 ...... 7.5 Saskatchewan PowerCorporation Saskatchewan OpportunitiesCorporation...... Saskatchewan GovernmentInsurance SaskEnergy Incorporated...... Investments SaskatchewanInc...... Information ServicesCorporation F R S G C T S S Summary Statement of Surplus of Statement Summary Government ofSaskatchewan r i u u a e I s e e N C s r t r c n a p a p k o
a e B s i l a l t l n u u u r o
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1 u n O a n i r z r d d g a t a . O . i n . o . r i . n g z . . s a a . . t n . . i . i o . z . n a . . s t . . i . o . . n . . s ...... 3 ...... 4.)$8. (23.6) $ 84.6 $ (40.2) $ ...... 339 8. 65.4 $ 183.8 $ (383.9) $ 0. 3. 309.8 $ 437.6 $ 302.1 $ $ $ $ $ E s 2 t i 0 m 300 419 (336.5) (461.9) (380.0) ( ( ( 0 7 6 5 1 ( a 7 4 6 6 0 0 7 04 14 (1.7) (1.4) (0.4) t - 5 7 5 9 2 5 e 0 ...... 0 1 8 d 5 2 1 9 (millions ofdollars) ) ) ) ) $ $ $ $ F 2 o 0 ( r 0 2 2 e 6 0 7 9 7 6 c - 3 0 7 0 7 a 0 . . . . . s 7 9 1 3 6 3 – t ) $ $ $ $ E s 2 t i 0 m ( ( 0 1 2 1 1 ( a 6 7 5 9 0 4 t - 5 1 0 9 9 e 0 . . . . . d 7 9 8 – 0 0 8 ) ) ) Budget and Performance Plan Summary | Budget 2007-08 57 )) )) )) 11 99 00 11 77 dd ...... 00 ee 00 77 22 00 -- tt 33 00 11 55 66 aa 88 11 11 00 ,, (( (( mm 00 33 ent’s fiscal ent’s ii (( tt 22 ss to correct the EE und customers, $$ $$ $$ $$ )) tt 99 33 33 00 77 ss ...... 00 aa 88 77 11 88 -- cc 66 99 55 22 66 ee 11 55 00 rr ,, 00 oo 33 (( 22 FF $$ $$ $$ $$ )) )) )) )) (millions of dollars) 22 33 11 22 dd 88 ...... 00 ee 00 55 11 66 -- tt 33 66 00 33 77 aa (( 22 66 77 00 Summary Statement of Surplus ,, (( (( mm 00 ii 44 tt 22 (( ss EE $$ $$ $$ $$ ss nn oo ii tt aa zz ii nn aa gg rr OO
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oo uu rr ss ss ss ff -- oo uu uu uu mm tt ll ff ll ll -- uu oo pp pp pp tt cc rr rr rr NN oo cc the 2007 Estimated Deficit is net of a $100M rebate to customers. The commitment to these rebates occurred prior to the Governm the 2007 Estimated Deficit is net of a $100M rebate The adjustment charged to the 2005-06 and 2006-07 fiscal years respectively. year end, March 31, and therefore the rebates are The budgets of these organizations are subject to Treasury Board review and include any transfers from the GRF. Board review and include any transfers from to Treasury The budgets of these organizations are subject year basis and may include grants from CIC. The budgets of these organizations are on a calendar Excludes dividend revenue from subsidiaries. fees that will allow them to be actuarily sound over the long term. These insurance organizations establish rates and year basis. The 2006 Surplus Forecast is net of a $44.1M rebate to Auto F The Auto Fund financial projections are on a calendar timing of the rebate expense is included in the Interagency Accounting Adjustment amount. uu uu uu SS SS AA NN SS 1 2 3 4 5 Accumulated Deficit, Beginning of Year...... Accumulated Deficit, Beginning of (3,528.9) (3,687.2) (3,687.2) Saskatchewan Auto Fund Compensation Board (Saskatchewan)...... Workers’ 1.7 18.9 4.7 Saskatchewan Crop Insurance Corporation ...... Crop Reinsurance Fund of Saskatchewan ...... (14.8) 34.8 (21.7) 36.8 – 33.0 58 Budget 2007-08 | Budget and Performance Plan Summary mriainEpne...... 1. 0. 305.3 (7,761.2) (7,761.2) 309.1 1 (7,825.8) 312.0 ...... Net Debt,BeginningofYear ...... Amortization Expense Acquisition ofCapitalAssets N D S Summary Statement of Changes in Net Debt Net in Changes of Statement Summary Government ofSaskatchewan u amounts donotincludecapitalassetsacquiredbygovernmentbusinessenterpriseslikeSaskPowerandSaskTel. These amountsonlyreflectcapitalacquisitionsbygovernmentserviceorganizationsliketheGRFandregionalhealthauthoritie e e r t c p
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D e 1 b ...... 563 520 (480.9) (532.0) (536.3) ...... t $ $ $ E s 2 t ( 8 i 0 m ( ( , 0 9 7 7 a 7 2 0 5 t - 5 1 1 e 0 . . . 8 d 6 3 4 ) ) ) (millions ofdollars) $ $ $ F 2 ( o 7 0 r , 0 e 8 1 ( 6 c 6 2 5 - a 4 8 5 0 s . . . 7 3 6 8 t ) ) $ $ $ E s. The s 2 t ( i 8 0 m ( ( , 0 2 1 0 a 6 8 1 4 t - 8 2 9 e 0 . . . d 7 5 9 7 ) ) ) Budget and Performance Plan Summary | Budget 2007-08 59 )) )) 77 11 0 1 dd 77 .. .. .6 00 ee 99 00 tt 00 40.5 44 00 aa 22 00 88 ,, ,, mm ii 88 33 tt (( (( ities. Capital ss ty amounts EE $$ $$ )) )) 44 22 dd 88 .. .. As at March 31 00 ee 11 00 tt 00 55 33 aa 22 77 22 ,, ,, mm 88 44 ii (( (( (millions of dollars) tt ss EE $$ $$ $ 5,096.3 $ 6,025.9 $ 13,847.7 $ 14,075.6 $ 4,521.2 $ 4,249.6 Summary Statement of Financial Position Government of Saskatchewan Government 1
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aa bb nn tt cc aa nn ee oo cc assets, inventories and prepaid expenses of government business enterprises like SaskPower and SaskTel are included in the equi SaskTel assets, inventories and prepaid expenses of government business enterprises like SaskPower and of these organizations and therefore treated as financial assets. These amounts only reflect the non-financial assets of government service organizations like the GRF and regional health author These amounts only reflect the non-financial assets of government service organizations like the ii ii FF AA NN LL NN Unamortized Foreign Exchange Loss...... Pension Liabilities ...... (10.4) 5,087.5 4,582. (15.1) GRF – Public Debt...... $ 7,274.7 $ 7,151. 1 Capital Assets ...... $Prepaid Expenses...... 4,412.1 $ 4,1 22.9 22.9 Other Liabilities...... 1,495.9 2,357 Inventories...... 86.2 86.2 Equity in Not-for-Profit Insurance Organizations...... Equity in Not-for-Profit 320.9 303.3 Cash and Cash Equivalents ...... GRF $ Loans to Non-government Organizations ...... Other Financial Assets...... Board Organizations...... Equity in Treasury Equity in CIC Board Organizations ...... – 122.7 673.9 (645.8) $ 4,624.6 770.9 137.9 772.4 (407.7) 4,449.1 60 Budget 2007-08 | Budget and Performance Plan Summary te I or raiain ...... 0.4 – .. Not-for-Profit InsuranceOrganizations – – 2.0 – Saskatchewan CropInsuranceCorporation 2.2 ...... Other CICBoardOrganizations 2.2 Saskatchewan OpportunitiesCorporation 2.2 – ...... Other akthwnWtrCroain.... 91–3. 6837.0 706.5 36.8 701.5 39.1 687.7 2,402.1 7.6 – 2,401.0 2,567.5 680.1 39.1 86.2 ...... SaskEnergy Incorporated Saskatchewan Water Corporation...... 2,481.3 Saskatchewan Telecommunications ...... Saskatchewan PowerCorporation te rauyBadOgnztos.. 39147186295219.4 3,701.2 219.5 3,525.7 7,198.1 $ 198.6 7,289.8 3,819.3 $ 7,320.0 $ 105.8 144.7 – 3,713.5 53.9 $ ...... CIC BoardOrganizations 7,320.0 $ Other Treasury BoardOrganizations...... Government akthwnGmn oprto... 492. 8733.1 52.0 99.9 28.7 49.7 100.3 24.9 45.3 96.1 24.9 12.1 96.1 – 33.2 – ..... Saskatchewan HousingCorporation Saskatchewan GamingCorporation...... Regional HealthAuthorities Municipal FinancingCorporation netetSsacea n...... 39–391. 11.2 10.9 26.5 $ 3.9 23.4 $ 19.9 – $ – 3.9 $ 19.9 $ ...... Investment SaskatchewanInc...... Information ServicesCorporation P P T T G P G P T P N C Summary Statement of Debt of Statement Summary Government ofSaskatchewan o o r As at March 31 March at As u u u u u I o R O u e odn oprto ...... 47467441379481.4 317.9 444.1 6.7 437.4 ...... Holding Corporation fSsacea...... 03–2. 1012.5 21.0 20.3 – 20.3 of Saskatchewan...... I T C t t b b b b b n t F a r a a a t
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a i r f g g o D t g i a a n i t e o a n n s b n n i i t z z i s . z a a . a . t t . i t . i o . o i . o n . n . n s . s . . 17–5. 5029.8 25.0 51.7 – 51.7 ... s . .8. 07154120.0 115.4 80.7 – 80.7 .. . E $ $ $ $ $ $ $ $ G s 1 1 1 t R i 1 1 1 7 3 7 F m , , , , , , 1 1 1 2 7 3 D 2 a 6 6 2 7 07–8. 1. 120.0 115.4 80.7 – 80.7 1 2 5 8 0 e t 8 8 2 4 3 8 3 0 e 0 b ...... 8 d 1 1 5 7 4 2 7 3 t O E $ $ $ $ $ $ $ $ s t h t i e m r
2 2 1 1 1 2 2 a D 5 5 3 0 3 3 0 t e 0 0 5 0 5 5 e 0 b ...... 8 d – – (millions ofdollars) 5 5 3 5 3 8 t E $ $ $ $ $ $ $ $ s 1 1 1 t 1 1 1 7 3 7 i m , , , , , , 4 4 3 2 8 4 1 T 2 a 1 1 5 7 1 6 8 8 o 0 t 8 8 8 4 3 3 8 0 t e 0 ...... a 6 6 8 7 7 9 5 1 8 d l $ $ $ $ $ $ $ $ 1 1 1 F o 1 1 1 7 3 7 , , , , , , r 1 1 0 2 5 4 2 1 e T 2 5 5 8 4 1 5 0 1 c o 0 0 0 3 9 6 1 1 5 a t 0 ...... a s 4 4 9 3 4 5 2 1 7 t l E $ $ $ $ $ $ $ $ s 1 1 1 t 1 1 1 7 3 7 i m , , , , , , 2 2 1 1 6 3 1 1 T 2 a 3 3 6 5 9 5 9 2 o 0 t 8 8 5 1 4 0 9 0 t e 0 ...... a 4 5 7 7 0 0 9 5 4 7 d l Budget and Performance Plan Summary | Budget 2007-08 61
S N S O E I S T I A R Z P I R N E A T G N R E
O S
S E E C I N I V S R U E S B S
T Supplementary Information T T E N S N S E E A M M
L N N R R A T E E I V V P O O A G C G All government organizations that are not All government organizations that are government business enterprises considered government service organizations. The financial information on capital assets displayed in the summary financial budget relate only to those capital assets owned and utilized by the General Revenue Fund and other government service organizations. These assets tend to be assets that provide public service such as highways. Capital assets owned by government business enterprises are included in the government’s equity in government organization amounts. These assets are typically commercial assets designed to generate income such as electrical These are self-sufficient government These are self-sufficient have the financial and organizations that and services operating authority to sell goods outside the to individuals and organizations These government as their principal activity. Gaming organizations comprise: Liquor and Financing Corporation, Municipal Authority, the Auto Fund, Saskatchewan Gaming Corporation, Saskatchewan Government Growth Fund, Saskatchewan Government SaskEnergy SaskTel, Insurance, SaskPower, Board. Compensation and the Workers’ N Government of Saskatchewan Government O I T A D I L O Y S T I N T O N C
E
F G O
N I D T O R H O T P E E M R There are two basic methods of combining There are two basic methods of the reporting the activities of organizations in combine each organization One is to entity. assets, on a line-by-line basis where all are added liabilities, revenue, and expenses together and significant inter-organization The balances and transactions are eliminated. the modified other approach is referred to as and net equity method where the equity with income of each organization is combined Revenue the central organization, the General Fund. Both methods arrive at the same bottom-line financial results and position. The Public Accounts uses both methods. A line-by-line consolidation is used for government service organizations like regional health authorities and the modified equity method is used for government business The Summary enterprises, like SaskPower. Financial Budget combines all organizations on a modified equity basis for the purposes of surplus. calculating the Government’s The Summary Financial Budget reports the The Summary Financial activities of the General expected financial controlled Revenue Fund and organizations is the by Government. This reporting entity Summary same as is used in the government’s Accounts. Financial Statements in the Public 62 Budget 2007-08 | Budget and Performance Plan Summary reflect accrual accountingforpension costs. required totheSummary BudgetedSurplusto than whentheyarepaid. Thisadjustmentis pension costswhenthey areearnedrather pension costs.Accrualaccounting recognizes requires thataccrualaccountingbeusedfor Canadian InstituteofCharteredAccountants paid topensionplansorpensioners.The pension costsonacashbasis,i.e.,moneys The GeneralRevenueFundaccountsfor Not-for-Profit organizationsaswell. will includeadjustmentsofCICBoardand Surplus ofTreasury BoardOrganizations,it Statement ofSurpluspriortoarrivingat Although thisadjustmentoccursonthe Interagency AccountingAdjustmentamount. year endandMarch31)arereflectedinthe period (timebetweentheorganization’s fiscal accounting forsignificanteventsinthestub accounting standardsareconsistent;and,any accounted forinthesameyear;toensure between governmentorganizationsare Adjustments to:ensuretransferpayments standards andspecificfiscalyears. organizations basedontheiraccounting forecasted surplusofthevariousgovernment Statement ofSurpluswillreflectthe The SummaryFinancialBudget– enterprises isinexcessof$5.6billion. of capitalassetsgovernmentbusiness Accounts indicatedthatthenetbookvalue generating plants.The2005-06Public I I A A N N C C A A D D O O T T D D J J E E S S J J U U R R U U T T S S A A S S S S T T
T T G G M M O O M M E E N N E E N N E E N N
N N C C A A T T Y Y T T N N
T T S S
A A O O A A C C
C C A A C C C C C C O O R R C C U U U U O O N N A A U U T T L L N N I I
N N B B T T A A G G
F F S S
O O I I S S R R
P P E E N N S S I I O O N N not takeadividendfromtheseorganizations longer term.TheGeneralRevenueFunddoes adjust theirratestobreakevenoverthe sound overthelongterm.Theywilltypically organizations areintendedtobeactuarially Not-for-Profit Insuranceorganizations.These or indirectly. Theothercategorizationisthe organization’s budgetandplanseitherdirectly Corporation (CIC)Board,wouldexaminethe Treasury BoardandCrownInvestment organizations bywhichCabinetCommittee, The summaryfinancialbudgetcategorizes receives 25percentofthe netprofitsof Lieutenant GovernorinCouncil. TheFund consisting ofeightpeopleappointedbythe It ismanagedbyaBoardofTrustees Saskatchewan GamingCorporationAct1994. since 1996accordingtotheprovisionsof FUND The CommunityInitiativesFundhasoperated INITIATIVES COMMUNITY loan guaranteeprogram. portfolio, agri-foodinvestmentand down ofthecorporation’s agriculturalloan January 1,1984.ACSmanagesthewind Corporation Act provisions of ACS wasestablishedpursuanttothe C C T T O O AGRICULTURAL CREDIT CORPORATION OF CORPORATION CREDIT AGRICULTURAL R R A A SASKATCHEWAN (ACS) SASKATCHEWAN R R E E T T G G A A E E G G A A S S U U O O N N R R I I R R Z Z Y Y I I A A Z Z
B B A A T T O O The AgriculturalCredit I I T T O O I I A A O O which cameintoforceon N N R R N N S S D D
O O
O O F F R R
G G G G O O A A V V N N E E I I R R Z Z A A N N T T M M I I O O E E N N N N T T S S The Budget and Performance Plan Summary | Budget 2007-08 63 The Farm was The following programs social centres; first responders, ambulance; care and day programs, respite, palliative programs for patients with multiple disabilities; public health nursing, public health inspection, dental health, vaccinations, and speech pathology; STABILIZATION FUND SASKATCHEWAN AGRICULTURAL The Fund was established under Financial Stability Act. exist within the Fund: New Crops Insurance Program; Big game Damage Compensation Damage Compensation Program; Waterfowl Program; the Canadian Farm Income Program; and, the Canada-Saskatchewan Assistance Program (CSAP II). REGIONAL HEALTH AUTHORITIES Services Act The Regional Health (RHAs) 1, 2002. Health proclaimed on August are delivered by services in Saskatchewan authorities. Major services 12 regional health include: of responsibility • Hospitals; • Health centres, wellness centres, and • Emergency response services, including • Supportive Care, such as long-term care, • Home care; • Community health services, such as • Mental health services; and • Rehabilitation services. The Municipal Financing MFC assists in making capital The Regional Colleges Act, OF SASKATCHEWAN (MFC) Eight regional colleges, operating under the authority of REGIONAL COLLEGES provide educational services and programs in over 40 locations throughout the Province. Through partnerships with universities and regional technical institutes such as SIAST, colleges deliver credit programs in response to the needs of rural and northern Saskatchewan. Regional colleges also offer literacy and basic education, industry credit and non-credit programs based on local needs and provide a broad array of counselling and assessment services geared to assisting individuals with career planning. MUNICIPAL FINANCING CORPORATION of The Municipal Financing Corporation in 1969 Saskatchewan (MFC) was established and continues under Corporation Act. the Saskatchewan Gaming Corporation minus the Saskatchewan by the GRF to the Métis the amount provided The Community Development Fund. provides grants for activities Initiatives Fund development and that strengthen human community vitality. of essential funds available for the financing and local improvements, schools, hospitals, towns, other construction projects in cities, the villages and rural areas throughout from Province. MFC may borrow directly the private lending institutions or through borrowed Department of Finance. The funds of the are used to purchase all or a portion by approved debentures sold each year Saskatchewan local governments. 64 Budget 2007-08 | Budget and Performance Plan Summary satellite, toruralandnorthern communities. services includinghigh-speedinternet,via services divisionprovidesavarietyof government departments.Thetechnology regional colleges,highschoolsand link theProvince’s universities,SIAST, Advanced EducationandEmploymentthat on behalfoftheDepartmentsLearningand division operatesdistancelearningnetworks and digitalcablesystems.Thee-learning throughout theProvinceoncable,satellite broadcast networkisdeliveredtothepublic children’s andculturalprogramming.SCN provides qualitycommercial-freeeducational, Corporation’s publicbroadcastnetwork e-learning andtechnologyservices.The three keyareas–broadcasttelevision, Network CorporationAct. SCN isgovernedby COMMUNICATIONS SASKATCHEWAN regulated by the corporatebodyestablishedunderand as theSaskatchewanCancerFoundation)is AGENCY The SaskatchewanCancerAgency(alsoknown CANCER SASKATCHEWAN cancer inSaskatchewan. supportive careprogramsforthecontrolof prevention, earlydetection,treatmentand effective andsustainableresearch,education, Saskatchewan. Itsmandateistodeliver follow-up ofcancerintheProvince the prevention,diagnosis,treatmentand responsibility forconductingaprogram NETWORK (SCN) NETWORK The CancerFoundationAct The Communications SCN operatesin with opened onSeptember6,2002. opening inNovember2001.CasinoMooseJaw public January26,1996withtheShowlounge Initiatives Fund.CasinoReginaopenedtothe Fund, FirstNationsTrust andtheCommunity of netprofitsbetweentheGeneralRevenue framework agreementthatprovidesforsharing Casino ReginaandMooseJawundera Gaming CorporationAct,1994 SGC wasestablishedunder CORPORATION GAMING SASKATCHEWAN services forthepeopleofprovince. need incontinuingtoimprovehealthcare timely andsecureaccesstoinformationthey across theprovince,providingthemwith care providersanddeliveryorganizations information networkisconnectingfront-line priorities ofthehealthsystem.The a timely, effectivemannerreflectingthe deliver informationtechnologysolutionsin provincial healthinformationnetworkand to implement,own,operateandmanagethe Corporations Act,1993. pursuant totheprovisionsof SHIN wasestablishedbyOrder-in-Council INFORMATION HEALTH SASKATCHEWAN (SGC) NETWORK (SHIN) (SHIN) NETWORK SHIN’s mandateis The Saskatchewan The Crown to operate Budget and Performance Plan Summary | Budget 2007-08 65 The Alcohol and Gaming The Alcohol and . SLGA is responsible for . SLGA is responsible AUTHORITY (SLGA) SASKATCHEWAN RESEARCHtime when SRC was established in 1947 at a COUNCIL (SRC) that science people were very aware of the role and technology played in winning the Second The concept was that science and War. World technology could be an instrument to build a better life for Saskatchewan people. The Council undertakes matters pertaining to research, development, design, consultation, innovation, and commercialization of science welfare. for the improvement of the Province’s SRC creates wealth through the responsible application of science and technology to assist Saskatchewan industry to be globally competitive. SASKATCHEWAN LIQUOR AND GAMING by SLGA is governed Regulation Act, 1997 control, and regulation of the distribution, across the province. SLGA liquor and gaming distributes wine, spirits and warehouses and beer to SLGA stores domestic and imported and and franchises for sale to the public is permittees. Most mainstream beer Ltd. Distribution distributed by Brewer’s and to retail liquor stores, some franchises and commercial permittees. SLGA owns and operates all video lottery terminals at all owns and manages the slot machines Saskatchewan Indian Gaming Authority casinos. SLGA also licenses and regulates bingo, most forms of gaming including and horse raffles, casinos, breakopen tickets, racing. The The The SIAST provides post-secondary SCIENCE AND TECHNOLOGY (SIAST) (SHC) SIAST operates under the authority of SIAST operates under the authority Science and Saskatchewan Institute of Applied Act. Technology SASKATCHEWAN INSTITUTE OF APPLIED through technical education and skills training Saskatoon, its four urban campuses in Regina, Moose Jaw and Prince Albert and a Virtual Campus to help meet the needs of students enrollment is over and employers. SIAST’s 13,300 full load equivalent students. SIAST offers 190 certificate, diploma and apprenticeship programs through six divisions: Business and Entrepreneurial Studies; Community Services; Industrial and Health; and Nursing; Science Training; In addition, SIAST offers basic Technology. skill development programs in Adult Basic Education; Basic Literacy; English as a Second Language; General Educational Development and Preparation; High School (GED) Testing Completion; and Life Skills. SASKATCHEWAN HOUSING CORPORATION the authority of SHC operates under suitable and affordable Corporation provides to low-income seniors, housing for moderate and individuals with an and for families SHC also improves access identified need. that to other housing programs and services enable its clients to achieve or maintain independence. SHC funds and administers nearly 30,000 housing units in 341 authorities communities through local housing receives and non-profit organizations. SHC and Canada Mortgage funding from the GRF, Housing Corporation and municipalities. Saskatchewan Housing Corporation Act. Saskatchewan Housing 66 Budget 2007-08 | Budget and Performance Plan Summary current governinglegislation. The CrownCorporations Act, 1993, Investments Corporation ofSaskatchewan. fund. In1978,theGFOwas renamedCrown dividends intothegovernment’s consolidated control, directinginvestment,androuting be amechanismfordevelopingbroadpolicy Saskatchewan’s Crowncorporationsandto to actasaholdingcompanyformanyof Finance Office(GFO)wasestablishedin1947 NewGrade EnergyInc.TheGovernment corporations andonemajorinvestment, company for11subsidiarycommercialCrown CIC isthefinanciallyself-sufficientholding ecosystems andtheirrelatedlandresources. matters relatedtothesustainabilityofaquatic Saskatchewan, withgeneralauthorityover integrated watermanagementin The Authorityistheleadagencyfor supplies andprotectsourcewaterquality. Authority hasamandatetomanagewater Strategy, theSaskatchewanWatershed government’s LongTerm SafeDrinkingWater Watershed AuthorityAct,2002 AUTHORITY Established under WATERSHED SASKATCHEWAN Saskatchewan StudentAssistanceProgram. purpose oftheFundistosupport and StudentAidFundAct,1985. under theauthorityof FUND AID The SaskatchewanStudentAidFundoperates STUDENT SASKATCHEWAN C C CROWN INVESTMENTS CORPORATION (CIC) CORPORATION INVESTMENTS CROWN I I C C
B B O O A A R R D D
O O R R G G A A The Saskatchewan N N I I Z Z The StudentAssistance A A T T I I O O N N S S as partofthe The primary is the foundation forcommonservices. systems, includingthedevelopmentofa mapping andgeographicinformation integration withtheprovincialsurvey, Saskatchewan’s landtitlessystemandits re-evaluation, redesignandautomationof Property Registry. Itsmandateincludesthe titles andsurveylegislation,thePersonal responsible fortheadministrationofland a wholly-ownedsubsidiaryofCIC.ISCis ISC wasestablishedonJanuary1,2000as OF CORPORATION SERVICES INFORMATION commercial coverage. tenant, farm,automobile extensionand offering acomprehensive lineofhome, property andcasualtyinsurancebusiness subsidiary ofCIC,itconductsacompetitive SGI CANADA,whichisawholly-owned Saskatchewan people.Underthetradename affordable, goodqualityinsuranceto SGI wasestablishedin1945toprovide INSURANCE GOVERNMENT SASKATCHEWAN commercially viableinvestments. and toprudentlymanageportfoliosof providing investmentcapitalandfinancing, economic growthanddiversificationby is toenhanceSaskatchewan’s long-term September 2003.Thecorporation’s mandate became astandalonesubsidiaryin known asCICIndustrialInterestsInc.It (IS) INC. Investment Saskatchewanwasformerly SASKATCHEWAN INVESTMENT SASKATCHEWAN (ISC) SASKATCHEWAN (SGI) Budget and Performance Plan Summary | Budget 2007-08 67 was The (SASKWATER) COMPANY (STC) SASKATCHEWAN WATER CORPORATION a wholly-owned subsidiary of CIC, SaskWater, provides competitively-priced customer- focused, quality water and wastewater services to Saskatchewan industries, municipalities, rural water groups and First Nations. Corporations Act Saskatchewan Water SASKATCHEWAN TRANSPORTATION of CIC that STC is a wholly-owned subsidiary has been providing passenger transportation, parcel express and freight services The bus throughout the province since 1946. that as company was established to ensure access to many communities as possible had STC Today reasonably priced transportation. serves 275 communities in the province, passenger providing more than 3.1 million miles in service each year. proclaimed on October 1, 2002. In accordance general powers and with the Act, SaskWater’s purposes are to construct, acquire, manage, or operate works and to provide services in accordance with any agreements that it enters into pursuant to the Act. as a leading communications company. as a leading communications 425,000 residential and provides SaskTel with competitive voice, business customers high speed internet, data, dial-up and television and e-business wireless, digital solutions. (SASKTEL) (SASKPOWER) CORPORATION (SOCO) SASKATCHEWAN TELECOMMUNICATIONS is a wholly-owned subsidiary of CIC SaskTel which was established as the Department of in 1908. and Telegraphs Telephones Railway, Its goal was to provide cost-effective service to as many farms, homes and businesses as possible. The corporation is now recognized SASKATCHEWAN POWER CORPORATION of SaskPower is a wholly-owned subsidiary CIC that was established as the Saskatchewan was Power Commission in 1929. Its purpose power to provide safe, reliable, cost-effective SaskPower to Saskatchewan people. Today in is the principal supplier of electricity Saskatchewan. It generates, purchases, transmits, distributes and sells electricity and related products and services to more than 436,000 residential, farm, industrial and commercial customers. SASKATCHEWAN OPPORTUNITIES subsidiary of CIC SOCO is a wholly-owned in 1994. In 2002 which was established portfolio moved to CIC investment SOCO’s to Investment and has since moved supports the growth and Saskatchewan. SOCO technology sector success of Saskatchewan’s through the operation of the Saskatchewan two Forest Centre in Prince Albert, and in Saskatoon, research parks: Innovation Place research and the Regina Research Park. These parks attract businesses that lead sectors. development in their respective 68 Budget 2007-08 | Budget and Performance Plan Summary Compensation Program. Program andtheBigGame Damage delivers theWaterfowl Damage Compensation natural hazards.TheCorporationalso producers fromproductionfailuresdueto programs whichprotectcropandlivestock Act. Insurance Act SCIC operatesundertheauthorityof INSURANCE CROP SASKATCHEWAN administered bySGI. nor givesmoneytotheProvince.TheFundis insurance program.TheFundneitherreceives The FundistheProvince’s compulsoryauto the province. farm, commercialandindustrialcustomersin service tomorethan327,000residential, safe, reliableandeconomicalnaturalgas communities. Today SaskEnergyprovides than 90percentofSaskatchewan years, withservicenowextendedtomore The systemhasgrownsubstantiallyoverthe and distributionservicesacrosstheprovince. continue providingnaturalgastransmission subsidiary ofCIC,wasformedin1988to SaskEnergy, whichisawholly-owned gas systembeganoperationsin1952. (SASKENERGY) Saskatchewan’s provinciallyownednatural INCORPORATED SASKENERGY N N CORPORATION (SCIC) (SCIC) CORPORATION O O O O SASKATCHEWAN AUTO FUND AUTO SASKATCHEWAN R R T T G G - - The Corporationadministersinsurance F F A A O O N N R R I I - - Z Z P P A A R R T T O O I I and O O F F I I N N T T
S S I I The FarmFinancialStability N N S S U U R R A A N N C C E E The Crop deficits oftheirfund. and eachisresponsiblefortheaccumulated based onaformulasetoutintheagreement from eachgovernment’s reinsurancefund Insurance Agreement.Paymentsaremade of theCanada-SaskatchewanProduction and provincialgovernmentsundertheterms insurance programisprovidedbythefederal Reinsurance fortheSaskatchewancrop indemnities andaccumulatedreserves. against lossesinexcessofthenetpremiums, the SaskatchewanCropInsuranceCorporation The Fundprovidesreinsurancecoveragefor OF FUND REINSURANCE CROP medically possible. productive workenvironmentassoon return workerstowellnessandasafe, income andexpenses.Theobjectiveisto compensate injuredworkersforthelost from employersandusesthosefundsto injuries. TheWCBcollectsannualpremiums and employersfromtheresultsofwork fault insuranceprogramthatprotectsworkers (WCB) BOARD The WCBwasestablishedin1930.Itisano COMPENSATION WORKERS’ SASKATCHEWAN 2007–2008 Saskatchewan Provincial Budget
Performance Plan Summary 70 Budget 2007-08 | Budget and Performance Plan Summary year. initiatives departmentswillundertakethis strategic directionandidentifiesthekey provides anoverviewoftheGovernment’s The 2007-08PerformancePlanSummary to achieveovertime. and thelargeroutcomesGovernmentwants government expendituresfromyearto also providesameaningfullinkbetween with theGovernment’s financialplan.It integrates theprovince’s strategicdirection Saskatchewan’s AccountabilityFramework Saskatchewan by: economy. We aremaking lifebetterin people enjoythebenefitsofourstrong providing fundstoensureSaskatchewan The 2007-08Budgetbuildsonthisvisionby our strongandprosperouseconomy. and ensuringfamiliesfeelthebenefitsfrom an evenstrongerfuturehereforyoungpeople protection andthegreeneconomy, building public healthcare,advancingenvironmental for Saskatchewanfamiliesbystrengthening over thenextyearwillbeonmakinglifebetter earth, butwheretheskyislimit.Ourfocus Our visionisofaprovincethatdownto from theThrone: 2007-08 wassetoutintheFall2006Speech The foundationforGovernment’s Planfor O O in Saskatchewan! Our Vision –MakingLifeBetter S S U U A A R R S S
K K V V A A I I S S T T I I C C O O H H N N E E
W W F F O O A A R R N N
A A
B B E E T T T T E E R R
labour market. trend aremanifestingthemselvesinthe third. Thebenefitsofthispositivegrowth and 2005,whenSaskatchewangrowthranked at 4.1percent.Thetrendcontinuedin2004 second highestamongallCanadianprovinces In 2003,SaskatchewanrealGDPgrowthwas growth at53.6percent. manufacturing sectorledthesurgewith trade grewby6.0percent.The increased by8.1percentin2006.Retail In addition,totalresidentialhousingstarts history. $9.7 billion,thehighestinvestmentlevelin investment increasedby8.7percentto of theprovince’s economicexpansion.Total another indicatorofthedepthandbreadth resource-related sectors.Investmentis role, althoughgrowthwasnotlimitedto natural gasandmininghaveplayedamajor extraordinarily wellinrecentyears.Oil, Saskatchewan’s economyhasperformed Buildingabetterfutureforouryoung • Increasingaccesstohealthcarefor • Keepingthestrongeconomygrowing; • A A T T
H H S S T T E E people. Saskatchewan familiesandseniors;and, R R
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R R O O W W T T H H Budget and Performance Plan Summary | Budget 2007-08 71
Per Cent 70 69 68 67 66 65 64 ale 2006 Sc 2005 2005 2004 2003 2003 ipation Rate (%) – RT ipation Rate (%) – RT 2001 c 2002 e Parti c 2001 1999
At this same time the unemployment rate hit At this same time the unemployment per cent. its lowest level since 1981 at 4.7 a per cent government debt as Saskatchewan’s trend of GDP continues to be on a downward 20 years. and is at its lowest point in almost D d 2000 N A Labour For
1997 ) 1999 % al Year En al Year ( c )
Fis E % T ( 1998
1995 ale A E R Sc P T
D T A 1997 G R N
E F N 1993 O M
O 1996 I Y T % O
A L P A P I 1995
1991 C S M I E A T
R N T 1994 A U B
P E
1989 N D E
A 1993 C Unemployment Rate (%) – LT Unemployment Rate (%) – LT T R W N E O E F H 1992
M 1987 C R N T 5 0 8 6 4 2 U
R
45 40 35 30 25 20 15 10 10 A
E ent C O Per ent C K Per V B S A O A L S G In 2006, a record number of the province’s In 2006, a record number of the working age population was employed a record (69.1 per cent). Saskatchewan had people in level of employment of 491,600 This 2006, an increase of 8,100 over 2005. of marked the fourth consecutive year record employment in the province. 72 Budget 2007-08 | Budget and Performance Plan Summary attractive forfamiliesand businesses. business environmentis competitiveand supports ourgrowingeconomy, andthatour market needs,thatourinfrastructure and ensurethatwecanmeetourlabour is tobuildonthestrengthofoureconomy Performance Plans,theGovernment’s strategy As isseenthroughoutseveralofthe2007-08 enjoy thebenefitsofthisstrength. and ensuringthatSaskatchewanfamilies future, capitalizingonavibranteconomy continues tobuildalong-termsustainable work andraiseafamily. TheGovernment making Saskatchewanthebestplacetolive, The 2007-08Budgetsupportsthegoalof Budget alsomakessignificantinvestmentsin full advantageofourstrongeconomy. This communities toensurethatpeoplecantake to investininfrastructure,highways,and growing stronger. TheGovernmentcontinues Saskatchewan’s economyisstrongand Budget, foratotalof16upgradessince1995. upgrades sincepresentingthe2006-07 Saskatchewan receivedthreecreditrating American independentratingagencies. a AAcreditratingfromallmajorNorth management, Saskatchewancurrentlyenjoys manage thatdebt.Becauseofsoundfiscal debt relativetotheincomeavailable to-GDP ratioasitmeasurestheprovince’s Investor confidenceisinfluencedbythedebt- Keeping theStrongEconomyGrowing ContinuetoadvanceaGreenagenda, • Increaseaccess toeducationensure • Provide thelargest evercapital • Continue providingacompetitivetax • This yeartheGovernmentwill: square brackets. responsible foreachinitiativearenotedin [ come. quality oflifecontinuesforgenerationsto economy, ensuringthatSaskatchewan’s high will complementtheprovince’s growing energy andclimatechange.Theseinitiatives will soonputforthstrategiesonsustainable leadership inenvironmentalstewardshipand The Governmentcontinuestoshow need tojoinourworkforce. ensure ouryoungpeoplehavetheskillsthey health care,ineducationandtrainingto In thefollowingsections,Departments hand-in-hand, withastrong economy. we meetlabourforceneeds;and, support thegrowingeconomy; hospitals andotherinfrastructureto investment inhighways,schools, and businessdevelopment; climate thatencouragesemployment ] Budget and Performance Plan Summary | Budget 2007-08 73 Y –
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S G T N N I E T R M T O S P E P V U N S I The 2007-08 Budget provides funding for The 2007-08 Budget provides funding program – our largest ever budgeted capital to roads $534.8 million – for improvements and highways, schools, hospitals and other infrastructure. The Government continues to commit to supporting and improving community infrastructure to improve the quality of life for Saskatchewan families. The 2007-08 Budget builds on recent announcements on funding for the highway system. Saskatchewan Highways and a multi-year has developed Transportation investment strategy to ensure that a high quality transportation network supports the fuel tax revenues in the development and fuel tax revenues provincial road system. maintenance of the investment in 2007-08 Saskatchewan’s will significantly exceed the provincial roads fuel taxes collected in the amount of on-road year. continues with the The Government education property tax $107.8 million in the eight per cent maintaining relief this year, credit for residential and commercial 38 per cent property and the approximately [Learning] credit for agricultural landowners. These initiatives create a competitive investment business climate that encourages as we and jobs. This is especially important in attracting compete with other jurisdictions – an essential and retaining our young people future. element of our province’s is being Y T I R E P S O R P
G N I R Fuel Tax Accountability Act Fuel Tax A H S introduced this year, following through on the introduced this year, commitment to use all on-road Government’s A strong economy has translated into A strong economy revenue that has allowed additional provincial to introduce sustainable tax the Government public services. The cuts and improved tax reform, which combination of personal taxes for residents each has lowered income two point and last October’s year since 1999, (PST) Tax reduction to the Provincial Sales more have made Saskatchewan a much attractive place to live. [Finance] reductions to the Personal Income Tax, Tax and business taxes, Provincial Sales Tax since education property tax introduced taxpayers 2000-01 result in Saskatchewan enjoying an annual tax saving of $650 million. Reform introduced Business Tax Last year’s in the sweeping changes to corporate taxes of the province, including the phase-out and a general Corporation Capital Tax significant reduction in the general This reform is rate. Corporation Income Tax period being introduced over a three year ending July 1, 2008, with $155 million in business tax cuts being provided in 2007-08. The PST reduction to five per cent, announced effective October 28, 2006, resulted in the lowest PST rate in 20 years and provides an estimated $340 million in tax savings to provincial residents in 2007-08. The 74 Budget 2007-08 | Budget and Performance Plan Summary Advancework onRuralEconomic • Completetwinning ofTransCanada and • 2007-08: 10 yearswiththefollowinghighlightsfor Government hascommitted$5billionover 2007-08 isthelargestinhistory. The Highways andTransportation’s budgetfor and exporters. competitiveness ofSaskatchewan’s producers positive contributiontowardsthe that thetransportationnetworkmakesa areas ofsignificanteconomicactivityensure or internationaltradesupportemerging major corridorsthatsupportinter-provincial economy. Decisionstoimproveanumberof goods andservicesthatfeedourexpanding network willensurethesmoothflowof Strategic investmentsinourtransportation RegionalShortlineRailwayandAirports. • EnsuringAboriginalConnections;and, • TheNorthernEconomicInfrastructure • RuralEconomicCorridors; • UrbanEconomicConnectors; • InternationalGatewaysandCorridors; • pillars: strategy proposesinvestmentsinsixkey province’s economicandsocialneeds.This and 302; Roads, aswellworkon highways219 McMurray area),FirstNations Access Garson LakeRoad(linking toFort Infrastructure Strategyincluding the Corridors, theNorthernEconomic Rosthern; on Hwy11NorthofSaskatoonto Yellowhead West andexpandingtwinning Strategy; $72 millionsince2001-02. [GR] increase from2006-07and anincreaseof sharing, whichrepresents a31percent bringing thetotalto$127 millionforrevenue municipal operationalfundingin2007-08, $30 millioninnewmoneywillbeaddedto pressure onthepropertytaxbase. investments alsohavetheeffectofrelieving cohesion inourcommunities.These sustainability, culturaldynamism,andsocial economic development,environmental infrastructure pressuresandsupport investments thataddressmunicipal The 2007-08Budgetmakessignificant infrastructure. approach tomunicipalfundingand This willfocusondevelopingasustainable for themunicipalsectorandprovince. long-term directionsandajointworkplan governance. Theurbanagendawillsetout regional economiesandstronglocal will bettersupportdynamiccities,thriving broader municipalsectorstrategicplan,that development ofan“urbanagenda,”withina the Governmentisundertaking As committedinthe2006ThroneSpeech, years tocome. people benefitfromthestrongeconomyfor infrastructure willensureSaskatchewan Strategic investmentsincommunity Increasemaintenanceandpreservation • Increasedfundingforroadsthatare • Advancetheexpansionofprimary • budgets overall.[DHT] Lloydminster area;and, damaged byheavyoiltruckactivityinthe weights roadsystem; Budget and Performance Plan Summary | Budget 2007-08 75 R O T C E S
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A The Government continues to work towards The Government sector which supports a viable agricultural economy. diverse Saskatchewan’s and Food (SAF) Saskatchewan Agriculture and diversifying the focuses on balancing as well as encourages primary sector, processing and value- additional agricultural added activity in the province. The risk Department also provides business that management programming to ensure safety agricultural producers have a financial market net against adverse production and outcomes. $118 million The 2007-08 Budget will provide to fully fund the Canadian Agricultural and Income Stabilization (CAIS) program $104.1 million to cover the provincial share of 2007 Crop Insurance government’s (CI) program costs. [SAF] Price Funding for the Crop Insurance Variable producers Option will be made available to this option for the 2007 crop season. Under insured a producer may choose to have the rather than the crop price established in July, price available at the March 31 insurance sign-up deadline. [SAF] Saskatchewan continues to put an emphasis on agricultural research and development. Saskatchewan Agriculture and Food, along with Agriculture and Agri-Food Canada, has provided $41.5 million for additional science and innovation infrastructure in 2006-07 and 2007-08. [SAF] $53.2 million will be provided for municipal $53.2 million will through various infrastructure projects programs such as the federal-provincial Infrastructure Fund (MRIF) Municipal Rural Saskatchewan Infrastructure and the Canada is a $17.4 million or Fund (CSIF). This from 2006-07 and is 48.7 per cent increase improvement for municipal infrastructure waste waste water, such as water, management/recycling and other environmental projects. [GR] Regional Economic and Co-operative initiatives Development will be undertaking to further engage economic development Nations stakeholders, including youth, First people and small business, in regional economic development efforts. Regional economies, including economic development will stakeholders and small businesses, benefit from the development and those implementation of tools, such as expansion. related to business retention and [RECD] the Building $40 million is being invested in Communities Program which provides grants for new construction, sustainable development projects, and rehabilitation of recreational and cultural infrastructure. [CYR] Parks help beautify our communities and make Saskatchewan a more attractive place to live. $4.2 million in grants will be provided to Authority seven urban parks: Meewasin Valley Authority Valley (Saskatoon); Wakamow Centre (Regina); Swift (Moose Jaw); Wascana Current Chinook Parkway; Prince Albert Park; and Parkway; Battlefords River Valley [ENV] Parkway. Tatagwa the Weyburn 7 6 Budget 2007-08 | Budget and Performance Plan Summary Nunavut, and theNorthwestTerritories, as Manitoba, Newfoundland andLabrador, including thePremiersof BritishColumbia, Almost 700peoplefrom acrossCanada– [DPM] bid ongovernmenttenderopportunities. to encourageAboriginal-ownedbusinesses implement anAboriginalprocurementpolicy The DepartmentofPropertyManagementwill Aboriginal youth.[FNMR] education, trainingandcareerpathsfor 2007-08 tosupporttheAEDPwithafocuson $822,000 ingrantfundingwillbeprovided sector employersandeducationalinstitutions. organizations, unions,publicandprivate partnerships involvingAboriginal and trainingopportunitiesthrough continue toincreaseAboriginalemployment Development Program(AEDP),workwill Through theAboriginalEmployment thriving economy. increase Aboriginalparticipationinour participating inprogramsorstrategiesto There areseveraldepartmentsthat the province. participation intheeconomicprosperityof development andsecuremeaningful communities tosupportcapacity others toworkwithFirstNationsandMétis Nations andMétisRelations(FNMR) opportunities fortheDepartmentofFirst is notfullyrealized.Therearereal of individuals,businessesandcommunities are posingchallengesandwherethepotential our economywhereskilledlabourshortages employment levels,therearestillpartsof While Saskatchewanisenjoyingrecord E E A A X X
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$2.3millionto supportanAboriginal • $36.9millioninfundingtosupportthe • in thefutureofSaskatchewan: aimed atincreasingAboriginalparticipation 2007-08 Budgetincludesseveralinitiatives potential canbemorefullyrealized.The force participation,Saskatchewan’s economic capacity forbusinessdevelopmentandlabour By supportingthegrowthofAboriginal Aboriginal governments.[SIR,FNMR] development byprovincial,federaland and practicesinAboriginaleconomic released inspring2007andwillinformpolicy discussions fromthesymposiumwillbe A finalreportontherecommendationsand future. Aboriginal involvementintheeconomy further policyandprogramsmaystimulate employment benefitstothispointandhow have generatedandsustainedeconomic Aboriginal communitiesandbusinessesthat Symposium identifiedfactorssupporting Development” inJanuary2007.The Nations, MétisandInuitEconomic “Excellence inAction:BestPracticesFirst well askeyAboriginalleaders–attendedthe and Métispeople. [FMNR] and economicoutcomes forFirstNations is morelikelytoresultin bettersocial in broaderprogramand policy decisions Involving FirstNationsand Métispeople with theprovince’s legalduty to consult. Consultation CapacityFund associated $2.0 millionforaFirstNationsandMétis consultation unit,whichincludes over 2006-07.[FMNR] This representsa$7.7millionincrease Saskatchewan GamingCorporationAct. Gaming FrameworkAgreementandthe Development Fundasperthe2002 Development Corporations,andtheMétis First NationsTrust, Community Budget and Performance Plan Summary | Budget 2007-08 77 T N E M P O L E V E D
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N R E H T R O N Strong prices for non-renewable resources Strong prices for non-renewable interest and have resulted in unprecedented investment in exploration and development in northern Saskatchewan. Key government such investments in northern infrastructure as roads, natural gas and telecommunications are also creating significant opportunities for business development and employment growth in the North. Given current we opportunities and our future potential, northerners must work hard to help position to take maximum advantage of these opportunities. Our northern young people are a huge asset need to work as we move forward. We together to create opportunities for our young people to start businesses and to gain meaningful employment. In 2007-08, funding will continue for the Northern Development Fund (NDF) grant program, including $295,000 for Regional Development Corporations and $205,000 for eligible projects that support marketing, youth entrepreneurship, and business development programs. Further, the Government has acknowledged Further, to recruit immigrants to that it is difficult enhancing our Saskatchewan without In addition to the international profile. highlighted above, second phase funding provided, as part of the $775,000 will be to promote Market Strategy, Labour province’s and training universities Saskatchewan’s language expand institutions internationally, skills training and services, and support recognition and programming. [AEE] Nations and Métis Business Development Nations and Métis was established in Program, which year program to 2005-06 as a four Aboriginal business provide grants to entrepreneurs. [FMNR] • million in grant funding for the First $1.5 to settle here and Attracting immigrants in our society is another participate fully thriving labour force. way to ensure a of Saskatchewan has received an average the last five 2,000 immigrants per year over to years. In 2006 alone, immigration Saskatchewan rose by 27 per cent. an In 2005, the Government introduced strategy aggressive three-year immigration and to help Saskatchewan compete nationally The globally for new skilled workers. Program Saskatchewan Immigrant Nominee government’s (SINP) was developed to support by goal of attracting 5,000 new immigrants 2008-09. exceeding The province is well on its way to this target through several initiatives new ones announced last year and through the Saskatchewan In 2006, this year. Immigration Nominee Program issued more than 1,000 nominations, which exceeded the target by more than 200. In 2007-08, $1.6 million is being provided for the second phase of the immigration strategy, with funds targeted at providing increased supports to immigrants in the form of language and literacy training, expanding the Immigrant Internship Program beyond Saskatoon, and the co-ordination and delivery of reception and settlement support in smaller centres and rural communities. 78 Budget 2007-08 | Budget and Performance Plan Summary this spring. Construction ofthenewpipelinewillbegin customers havesignedupfortheservice. SaskEnergy announcedthatsufficient customer contributions.OnMarch8,2007, will comefromresidentialandcommercial remaining $6.8millionrequiredfortheproject to extendnaturalgasserviceLaRonge.The grant, matchinganinvestmentbySaskEnergy, In 2006-07,theProvinceprovideda$7million health authorities.[AEE] organizations suchasschooldivisionsand local government,orpublicsector Nations governmentadministration,northern people aswellthoseemployedinFirst It isdesignedtoberelevantbothnorthern issues andAboriginalpublicadministration. The programplacesemphasisonnorthern complete afulldegree. North, buthavebeenunabletomove second yearuniversitylevelcoursesinthe for Northernerswhohavecompletedfirstand Studies. Thisdegreecompletionprogramis deliver aBachelorofArtsdegreeinNorthern have enteredintoafive-yearpartnershipto Arctic, andtheUniversityofSaskatchewan Northlands College,theUniversityof sector ofthenortherneconomy. [NA] continue tosupportthisimportanttraditional Commercial FishTransportation Subsidyto In addition,$385,000willenabletheNorthern The existingPSTexemptiononENERGYSTAR environmental goals.[ENV] initiatives thatwillhelpmeetits unfolds, theGovernmentwillannounce climate changeinitiativesandastheyear $7.5 millionwillbespentongreenand continues tobestrongandprosperous. responsibly whileensuringthatoureconomy us tobeleadersintacklingclimatechange and communities.Abalancedplanwillenable energy forSaskatchewanhomes,industries while ensuringareliablesupplyofaffordable to ourchildrenconfrontclimatechange challenge totheentireplanetandweoweit Climate changepresentsanenormous environment andgrowtheeconomy. opportunities thatbothprotectthe and economicvaluesbyencouraging strategies willbetterintegrateenvironmental sustainable growthinourProvince.These change plan,willprovideafoundationfor a sustainableenergystrategyandclimate advance agreenstrategywhich,alongwith During 2007-08,theGovernmentwill Program. [ENV] continue theBeverageContainer Recycling SARCAN willreceiveagrant of$11millionto programs willreceivefundingin2007-08. In additiontonewinitiatives,manyongoing efficiency inthehome.[Finance] clothes washerstoencourageenergy refrigerators, freezers,dishwashersand a similarPSTexemptionforenergyefficient 2007-08 Budget.Thisinitiativecomplements heat pumpsisbeingextendedaspartofthe qualified residentialfurnaces,boilersand A A
G G R R E E E E N N E E R R
S S A A S S K K A A T T C C H H E E W W A A N N ® Budget and Performance Plan Summary | Budget 2007-08 79 In 2007-08, the budget for the ethanol fuel In 2007-08, the budget by $3.3 million to $21 tax rebate will increase production expands. [SIR] million as industry Renewable Fuels Working The Saskatchewan to research and make Group continues to both the federal and recommendations on the federal provincial governments standard and program. renewable fuels [RECD] Plan The Saskatchewan Biodiversity Action Biological was released to the public in 2004. food, clean diversity is essential for human health, work, recreation, and shelter, water, for culture. This is particularly true and other Saskatchewan where agriculture biodiversity-related economic activities, fishing, hunting and including forestry, tourism play a large role in the economy. the The plan continues in 2007-08 through water, continued protection of land and funding ecological and biodiversity to interpretation, and enabling agreements habitat secure natural ecosystems and natural [ENV] for the benefit of future generations. The Office of Energy Conservation (OEC) continues to encourage action by the public and industry by providing valuable information in the development of cost- effective energy conservation initiatives in the province. The OEC furthers these activities through a combination of provincial funding and leveraging federal dollars. [SIR, SRC] A waste paint recycling program and an A waste paint recycling recycling program were end-of-life electronics in 2006-07. Saskatchewan both implemented with a province-wide, is the only province electronic waste recycling industry managed monitors computers, program. Televisions, now accepted at the 71 and printers are in the province. Over 70,000 SARCAN depots have been collected, and litres of waste paint paint have in addition, over 11,000 litres of the Paint been picked up and reused through Exchange Program. of the Safe Through ongoing implementation the Government Strategy, Drinking Water of safe remains committed to the provision The drinking water for communities. Drinking departments involved in the Safe SaskWater, (SE, SH, GR, SWA, Strategy Water to SAF) continue to support improvements water and wastewater systems in to ensure municipalities, including measures the future. sustainability of these systems in works Inspections at water and sewage and across the province ensure operational treatment requirements are met. Over 97 per cent of communities have achieved or made significant progress towards waterworks operator certification. [ENV] SWA will receive a grant of $7.2 million, an increase of $647,000, for watershed planning Control and reinstatement of the Water program. [SWA] Government is continuing its work with ethanol proponents, communities, the Saskatchewan Ethanol Council, the Force, and other Saskatchewan Biodiesel Task stakeholders in developing a strategic plan for the future of the renewable fuels industry. 80 Budget 2007-08 | Budget and Performance Plan Summary source. consumed inthebuildingisfromagreen utilized. Fiftypercentoftheenergy and waterconservationtechnologiesare performance heatingsystemwasinstalled, natural lightwasmaximized,ahigh waste wasdivertedfromlandfills.Useof structure andover80percentofconstruction The projectreused75percentoftheexisting technologies. maximizes theuseofleadingsustainability DPM’s headofficeprojectatCenturyPlaza stewardship, efficiencyandsustainability. developing industrybest-practicesin supporting Government’s greeneffortsby (DPM) hasdemonstratedleadershipin The DepartmentofPropertyManagement change. [SRC] Government’s agendarelatedtoclimate fuels, andotherprojectsthatwillfurtherthe research inuseofalternativeandrenewable research program.SRChasconducted in provincialfundingtocomplementits Council (SRC)isreceivinga$394,000increase In addition,theSaskatchewanResearch Reducingthepotentialforreleaseof • Investing$1.9millioninsustainability • Increasingthequantityofwindenergy • Promoting increasedrecyclingofpaper • Additional initiativesfor2007-08include: the SaskatchewanDiseaseControlLaboratory. used intheReginaCorrectionalCentreand Similar technologiesandprincipleswillbe Stone Building.[allDPM] will bereplacedatSaskatoon’s Sturdy uses CFCs.In2007-08,suchequipment systematically replacingequipmentthat air conditioningequipmentby chlorofluorocarbons (CFCs)fromexisting Depots inSaskatoonandSwiftCurrent. Campus andHighway’s EquipmentRepair Youth Centre,KilburnHall,SIASTPalliser include improvementsatthePaulDojack efficiency upgrades.Plannedupgrades facilities aspartofongoingenergy energy performanceinvestments)infive initiatives (including$1.2millionin purchases. of executivegovernmentenergy million kilowatts,representing36percent purchased fromSaskPowertoabout30 recycling binsingovernmentfacilities. government buildingsandinstallingmore and returnablecontainerswithin Budget and Performance Plan Summary | Budget 2007-08 81 Total funding of $78.5 million in 2007-08, of $78.5 million in 2007-08, funding Total 7.3 per cent increase over a $5.3 million or provided to the 2006-07, is being This funding Agency. Saskatchewan Cancer of drug is primarily to increase the number treatments and types of cancer drugs. Cancer Agency the Saskatchewan Recently, therapy added Rituxan as a maintenance to its formulary. drug, as well as Taxotere Medicare, has Saskatchewan, the birth place of developing long been considered a leader in care. The innovative approaches to health significant 2007-08 Budget provides the most seniors in a expansion of health services for the Seniors’ generation. Effective July 1, 2007, $15 Drug Plan introduces a maximum under the prescription drug cost for all drugs and older. formulary plan for people aged 65 at an This will benefit 115,000 seniors, Lower- average annual savings of $400 each. income seniors who don’t pay for drugs will The cost of this initiative continue to not pay. is estimated to be $35.7 million for partial year implementation in 2007-08, and $53.1 million annualized in 2008-09. The Government is also improving health benefits for vulnerable workers. Supplementary eye care benefits and enhanced drug coverage for lower income workers will be introduced at a cost of $2.5 million in 2007-08. the Muskeg Lake Cree will continue with Work Nation to establish a First Nations Wellness Centre and within that a Diabetes Centre of Excellence in Saskatoon.
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Saskatchewan Families and Seniors Families Saskatchewan N I Increasing Access to Health Care for Care Health Access to Increasing
S T N E M T S E capacity; of our children and youth; infrastructure support for the health core business. system’s V N I Healthy people contribute to a healthy Saskatchewan. Government has a clear role to play in investing in the health care system to ensure it is the best it can be. This Budget provides a 6.4 per cent increase in Regional Health Authorities funding (an additional $125 million in 2007-08) to improve provincial health services. [All initiatives profiled in this section are from Health, unless otherwise indicated.] Strengthening Saskatchewan’s leadership in Strengthening Saskatchewan’s health care was another improving public Fall 2006 Speech from the cornerstone of the Performance Plan 2007-08 Throne. Health’s in the focuses on the most immediate issues the health system while recognizing importance of future oriented investments. by The 2007-08 Health Budget is increasing $274 million which: • Improves access to health care; • Reduces wait times through expanded • a healthy population; Promotes • to improve the health initiatives Targets • Supports our seniors; • Advances workforce planning; and, • and Ensures required technology 82 Budget 2007-08 | Budget and Performance Plan Summary Provide anadditional $1.6millionfor • Retainthetargeted surgicalfund • procedures, theprovincewill: further reducewaittimesformedical new initiativestotargetlongwaittimes.To These effortswillcontinuewithexistingand health regionswasreducedby880patients. for surgeryintheprovince’s sevenlargest patients whowerewaitinglongerthanayear nine monthsof2006-07,thenumber 2,000 surgeriesinthatyear. Duringthefirst lists byover1,400,performinganadditional Saskatoon wereabletoreducesurgicalwait surgical fundin2005-06,Reginaand With theimplementationofatargeted Saskatoon. these surgeriesaredoneinReginaand 38,000 outpatientsurgeries.76percentof surgeries annually:35,000inpatientand The healthsystemperformsover73,000 a yearforsurgery. in thenumberofpatientswaitinglongerthan system therehasbeenasignificantreduction a comprehensivesurgicalmanagement increased investmentsandestablishmentof priority forSaskatchewanresidents.Through surgical anddiagnosticservicesremainsa through thereductionofwaittimesfor Improved accesstoacutecareservices R R I I M M E E D D P P knee surgeriesthisyear; surgeries, foratotalof3,275 hipand 160 additionalhipandknee replacement this year; to 2,000moresurgeriesbeperformed ($8.9 millionin2007-08),allowingforup U U R R C C O O I I V V N N I I G G N N
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V V I I C C E E S S childhood education supportstofamilies. addiction services, childcareandearly such ashomevisits,mental healthand children byprovidingintensive supports growth anddevelopment ofvulnerable Increase capacityforservicestopatients • Invest$1milliontoimprovepatient • Makeaninvestmentof$510,000toallow • BeginplanningforanMRIatSt.Paul’s • Provide anadditional$1.4million,which • The considered. ensure allelementsofdevelopmentare educational andsocialservicessectorto children meansinvolvingthebroader the currentandongoinghealthstatusof impact ontheirhealthlaterinlife.Improving development ofourchildrennowwillhavean Investing inthehealthygrowthand C C H H I I 2007-08. hospital inEstevanwillbeoperational in Tisdale. Therenalsiteatthedistrict hospitals aswellthedistricthospital Regina, Saskatoon,andsixregional clinics. Therearerenaldialysissitesin through chronicrenalinsufficiency growth inthenumberofpatientsserved dialysis treatmentsanda20percent $1.5 millionwillallowforanincreasein with kidneydisease.Anadditional number ofpatientstreated;and, services inSaskatoonandtoincreasethe access tothecardiaccatheterizationlab Bone MineralDensitytestingthisyear; for anadditional5,500patientstoreceive Hospital inSaskatoon; MRI scanstobeperformedthisyear; will allowforapproximately3,100more performed since2003-04.Thisinvestment Magnetic ResonanceImaging(MRI)exams will morethandoublethecapacityfor L L KidsFirst D D R R E E N N ’ ’ S S
program supportsthehealthy H H E E A A L L T T H H Y Y
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I T H I T U L R capacity within the province to meet workforce requirements; provincial recruitment agency; northern, rural and hard to recruit locations, through a grant program; an additional grant program; projecting and forecasting implications for the future health workforce; and, the needs of health care employers. A C E E H R Ensuring a sufficient supply and appropriate Ensuring a sufficient supply and mix of health care providers in an is a increasingly competitive environment and priority requiring a comprehensive inclusive approach to planning. Workforce Saskatchewan’s Together: Working Action Plan a defines a multi-year strategy to address education, range of provider issues including: training, workplace safety and the quality development of representative and workplaces. is In 2007-08, an additional $8 million multi-year provided as part of the $25 million to: plan announced in the fall of 2006 • placement Build additional clinical • through the Recruit needed professionals • to Attract health care professionals • through Retain our health professionals • program; Develop a nursing mentorship • that will assist in Utilize a research model • of graduates with Better align the supply Funding to support a new midwifery site in Funding to support midwives is also planned. Saskatoon with four provincial total to eight This will bring the midwives once all of the funded registered positions are filled. These services are made available in nine These services are located throughout targeted communities the program will year, the province. This to a total of 850 families – provide services and 440 new families, 230 prenatal families through and graduate from as families move and Health] the program. [Learning outcomes in children will Improving health the health have a positive overall impact on problems care system by preventing common children and conditions, as well as ensuring grow up to be productive, healthy, contributing members of society. is For example, good dental hygiene of health considered a crucial determinant however, lifetime. Some children, over one’s care. do not have access to adequate dental a Therefore, the 2007-08 Budget introduces to be applied targeted dental sealant program and 7. These to high-risk students in grades 1 and sealants will help prevent cavities our children. promote better dental hygiene in 2007-08 $2.25 million is being invested in health mental to improve access to children’s therapies, by services and children’s providing additional specialists to increase capacity and reduce wait lists. This budget will provide additional supports for children with autism and increased training for health professionals to serve as a resource for families with autistic children, at a cost of $490,000. In addition, a centralized respite service ($300,000) will be available for families with children with complex needs, such as those who are ventilator-dependent. In 2007-08, the Department of Health will cover 100 per cent of the cost of insulin pumps for a targeted population of children with diabetes. 84 Budget 2007-08 | Budget and Performance Plan Summary to becompleted in2008. Saskatchewan DiseaseControlLaboratory, 2007-08 tocontinuework onthenew This Budgetprovides$16.45 millionin Saskatoon. the OliverLodgeLong-term CareFacilityin facilities inMoosominandPreeceville, that beganlastyearsuchasintegrated continue onseveralhealthfacilityprojects and efficienthealthcaresystem.Work will infrastructure requirementsforamodern developments helpmaintainandenhance Investments incapitalandtechnological program inCanada.[AEE] Aboriginal enrolmentrateforanursing successful inthatitexperiencesthehighest this program.Thisprogramcontinuestobe 17 percentofthetotalnumberseatsin Program Saskatchewan(NEPS)whichis Aboriginal studentsintheNursingEducation field. Atotalof70seatswillbesetasidefor of theAboriginalworkforceinmedical This Budgetalsoencouragestheexpansion medical field.[AEE] more opportunitiesforyoungpeopleinthe labour marketdemandandwillprovide and trainingcapacitywithhealthsector residency seats,willhelptoaligneducation including anincreaseinthenumberof Expansion oftheCollegeMedicine, workforce. [AEE] medical residentstoentertheSaskatchewan registered psychiatricnurses,doctorsand registered nurses,licensedpractical four years.Thisexpansionwillallowformore growing to105additionalopportunitiesin professionals willincreaseby37in2007-08, Training opportunitiesforhealthcare H H E E A A L L T T H H
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P P R R O O J J E E C C T T S S and reducingduplicationofmedicaltesting. efficient, providingquickeraccesstoresults system willmakethehealthmore components oftheelectronichealthrecord planned electronicx-rayandlabresults This systemwillimprovepatientsafety. The decisions fortheirpatients. make thebestdrugtherapyandtreatment care locationintheprovince,helpingthemto to themostcurrentinformation,fromany health professionalswillhavesecureaccess health recordsystem.Throughthissystem, further thedevelopmentofelectronic $5.7 millionin2007-08isbeingdevotedto ContinuedSecure Careprogramming, • Continuedimplementationofsubstance • Continuedimplementation ofa12-bed • towards: this BudgetforProjectHope.Fundingwillgo An increaseof$1.4millionisprovidedin and treatment.[Health,CR,CPS,Justice] in theareasofsupplyreduction,prevention This planincludesawiderangeofstrategies year responsetoalcoholandsubstanceabuse. Project Hopewaslaunchedin2005asamulti- T T H H E E substance abuse. years, whoareseverelyaffected by risk, hard-to-engageyouth, aged12to17 which todatehasassistedover120high- abuse treatmentcommunitysupports;and, Albert GrandCouncil; facility incollaborationwiththePrince Saskatoon, anda15-bedyouthtreatment youth treatmentstabilizationunitin brief detoxfacilityinRegina,a24-bed
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H H O O P P E E Budget and Performance Plan Summary | Budget 2007-08 85 centre which will develop a new approach, centre which will develop a new to in consultation with the community, the better engage youth in learning and labour market; and, centre which is aimed at improving to services to the inner city and is linked the future revitalization of Scott Collegiate. Institute of Technologies (SIIT), Dumont Institute of Technologies to Institute, and the community Technical facilities and programs to support integrated city youth and other learners better link inner and improving overall directly to job training educational outcomes. training initiatives are In Saskatoon, these facility at Mount focused on an integrated inner-city Royal Collegiate focused on helping training youth transition into post-secondary are initiatives and the workforce. Two planned for Regina: • The Regina inner city trades and skills • The North Central community services spending for the Saskatchewan Total being Employment Supplement (SES) is working increased by $422,000 to ensure families who rely on this supplement do not become ineligible for benefits due to inflation. [CR] Community Based Organizations will receive $5.7 million to allow for wage increases in This will ensure delivery of that sector. programs and services and advance independence for vulnerable people and those with disabilities. [AEE] S E M O C T U O
H T L A E H
G N I V O R providing affordable housing for 500 providing affordable housing for in more low to moderate income families the inner cities and communities; families; and, the home building and repair sector. P M I Poor health outcomes are often directly Poor health outcomes and the conditions in related to poverty steps are Correspondingly, which people live. the impact of poverty, being taken to reduce supports to those most to increase basic social housing and to vulnerable, to improve our communities. increase safety in skills In 2006-07, a $100 million housing, program training, and inner city revitalization was announced demonstrating Government’s need is leadership in investing where the greatest. [AEE, CR, Health, Learning] This package of initiatives included $60 million for: • The single largest expansion of HomeFirst, • Rent subsidies for 300 very low income • A training component to link youth to $8 million will fund community programs promoting health and well-being. Potential services offered to the community could include social services, connections to libraries and child care centres, immunization, healthy baby programs, substance abuse counselling and other health care services. $32 million will fund enhanced partnerships among the pre-K-12 school system, Saskatchewan Institute of Applied Science (SIAST), Saskatchewan Indian and Technology 8 6 Budget 2007-08 | Budget and Performance Plan Summary non-offending parent.[JU] and information forthechildaswell asthe programs offercounselling, support,referrals program tootherareasof theprovince.The and PrinceAlbert,will expandthe locations: NorthBattleford, Regina,Saskatoon, program willenhanceprogrammingincurrent Children WhoWitness DomesticViolence An increasedinvestmentof$370,000inthe 1,500 childrenon-reserve.[CR] on-reserve. Thiswillbenefitapproximately welfare servicesin18FirstNationsagencies strong andaccountabledeliveryofchild $700,000 in2007-08willhelptosupport year. [CR] approximately 7,700childreninthecoming respond. Theseeffortswillassist $9 millionforChildandFamilyServicesto supports havenecessitatedanincreaseof foster care,privatetreatmentandfamily Volume increases infostercare,therapeutic communities acrosstheprovince.[CR] residential anddayprogramsupportsin fund thedevelopmentofneworenhanced participate inthecommunity. TheBudgetwill opportunities fordisabledindividualsto $1.6 millionisbeingprovidedtoincrease individuals. [CR] in 2007-08,benefitingover30,000 income supportswillincreaseby$3.5million Transitional EmploymentAllowance(TEA) The SaskatchewanAssistancePlan(SAP)and more prosperouseconomy. the mostvulnerable,feelbenefitsofa programs, ensuringthatallpeople,including investments inourhealthandsocial Government tomakelong-term,sustainable A growingandvibranteconomyallowsthe P P R R O O T T E E C C T T I I N N G G
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V V U U L L N N E E R R A A B B L L E E prevent re-offending behaviour. [CPS] employment isoneofthebestways to offenders, recognizingthat maintaining other supportscurrently providedfor existing vocationalreadiness trainingand upon theirrelease.This program willenhance offenders reintegrateintothecommunity supportive employmentprogramtohelp In addition,$486,000willfundanew risk violentoffendersinthecommunity. [CPS] FTEs, toprovidebettersupervisionofhigh- initiatives willtotal$1.6millionand16.5 Enhanced violenceandgangreduction offenders. [JU] arrest andprosecutionofchildsexual prosecution servicesdirectlyrelatedtothe investment willfundincreasedpolicingand support services.[CR]Aswell,a$1.3million children intheformofpreventionand enhance servicesforsexuallyexploited the province.$2.1millionwillbeprovidedto 400 sexuallyexploitedchildrenandyouthin It isestimatedthatthereareapproximately [JU andFNMR] address manyaspectsofthiscomplexissue. made over100recommendationsintendedto their relationshipwiththejusticesystem,and reviewed theneedsofAboriginalpeopleand Commission” reportof2004.TheCommission and MétisPeoplesJusticeReform the recommendationsof“FirstNations implement cross-departmentalresponsesto In 2007-08,theGovernmentwillcontinueto resources, andtotheCoroner’s Office.[JU] Gang andDrugStrategies,forprosecution number ofpoliceofficersassignedtothe and municipalpoliceforceswillincreasethe A newinvestmentof$2.4millioninRCMP H H E E A A L L T T H H Y Y
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C C O O M M M M U U N N I I T T I I E E S S Budget and Performance Plan Summary | Budget 2007-08 87 Western College of Veterinary Medicine at College of Veterinary Western the University of Saskatchewan and the Laboratory building at the University of Regina to offset costs associated with operating those facilities; of Medicine at the University of Saskatchewan to ensure that staffing and research potential are kept at required levels; and, Petroleum Systems Engineering of Regina’s program by providing an additional $650,000. [AEE] • to the College An additional $4 million • for the University Stabilization of funding cost of living and affordable housing, we are cost of living and recent graduates to our better able to attract Province. [Finance] McCall is expected The Honourable Warren Government to finalize recommendations for of the during 2007-08 from his review post- accessibility and affordability of The secondary education in Saskatchewan. short and review is expected to recommend more long-term strategies to make education accessible for students. [AEE] affordable Education will continue to be more tuition with the extension of the University This is year. freeze for the third consecutive funding accomplished by increasing operating 2007-08. to universities by $21.6 million in [AEE] The universities and federated colleges of will receive a total operating grant $303.6 million in 2007-08, an increase of $26.2 million or 9.5 per cent including: • million to the Increased funding of $1.5 for Our Young People Young for Our Building a Better Future Better Future a Building N
O O I T T
A S C S E U C D C E
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L G B N A I S D A R E O R F C F N A I Continuing the tremendous growth our Continuing the tremendous growth several economy has enjoyed over the last years will require a properly skilled that objective, we are meet workforce. To pre- enhancing all levels of learning from kindergarten to post-doctoral studies. The coming year will see opportunities for our youth expanded in a variety of ways. The 2007-08 Budget introduces a five-year, Exemption for recent $10,000 Graduate Tax graduates from an accredited post-secondary program. When combined with existing tax exemptions, the first $20,000 of income earned by the graduate is exempt from provincial income tax during the first five years following graduation. This exemption allows Saskatchewan to offer a competitive tax system as compared with neighbouring provinces. Combined with other “Saskatchewan advantages”, such as a low Saskatchewan is enjoying record employment Saskatchewan is unemployment rates levels and the lowest Province in 30 years. Retail witnessed in this starts are up, and our sales and housing be very housing market is considered to cost of living affordable, contributing to a low compared to the rest of the country. want young people to build their futures We labour in Saskatchewan. A young and vibrant demands force will help supply the growing of our economy. 88 Budget 2007-08 | Budget and Performance Plan Summary An additional75on-reservebasic • 104opportunitiesinEarlyChildhood • Asnotedinthe previoussection, • 1,297opportunities availablethrough • 544opportunitiesinhealtheducation, • opportunities forthecomingyearare: opportunities havebeenadded.The2,118 Since 2004,6,164additionaltraining in ourgrowingeconomy. awareness ofhowtheycanbestparticipate implemented toincreaseyoungpeople’s being experienced.Initiativeswillalsobe areas wherelabourshortagesarealready additional 2,118trainingopportunitiesin available. Increasedfundingwillprovidean the numberoflearningopportunities training institutionstoofferanincreasein increase capacityoftheeducationand An essentialpartoftheStrategyisto provincial labourmarket. is attractingandretainingouryouthinthe economy. Akeycomponentofthisstrategy the currentandemergingneedsofourstrong and retainingourlabourforcetomeetboth strategy focusesondeveloping,attracting provincial LabourMarketStrategy. This has beenleadingthedevelopmentofa Advanced EducationandEmployment(AEE) L L A A B B the regional colleges; education opportunities offeredthrough Education; 15 licensedpracticalnursing); 18 nursingeducationprogramand expansion (fourmedicalundergraduate, health careprofessionaltraining 37 opportunitiesinthefirstyearof CareerStart; resulting fromtheLabourMarketStrategy; trades, skillsandbasiceducationdirectly O O U U R R
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S S T T R R A A T T E E G G Y Y population. [AEE] supports forthisgrowingsegmentofour and off-reserveprovideenhancedstudent (SIIT) willsupportincreasedcapacitybothon Saskatchewan IndianInstituteofTechnologies Providing $2millioninfundingtothe growth oftheSaskatchewaneconomy. particularly youth,iscriticaltothecontinued outcomes forFirstNationsandMétispeople, Achieving bettereducationandlabourmarket Providing $600,000forprogramsand • SupportingtheworkofShared • Fundingastrategytodevelop • Supporting thesetransitionsisfacilitatedby: workplace. secondary education,trainingandthe skills necessarytotransitionpost- to Grade12systemdevelopstheessential thriving economy. Astrongpre-Kindergarten opportunities tomeetthedemandsofa The provinceneedstoexpandtraining 40northernconstructionopportunities. • 21opportunitiesintheBachelorof • in theprovince.[AEE] services tohelpyouthfindandkeepjobs [Learning] and, environment forAboriginalstudents; improve theeducationalexperienceand Services-Capacity BuildingCouncilto system; [Learning] pre-Kindergarten toGrade12school representative workforcewithinthe [all AEE] Northern Studiesinitiative;and, Budget and Performance Plan Summary | Budget 2007-08 89 and supports for KidsFirst, child care spaces; Kindergarten programs; homes; to support the renovation and maintenance of existing child care child infrastructure to prepare for new care spaces; and, service providers and parents. The building blocks for learning are The building blocks Over the next year, established early. be enhanced by new this foundation will million in Early Learning investments of $8.2 which includes and Child Care (ELCC) approximately: • million for 500 additional licensed $1.4 • for 15 new targeted Pre- $730,000 • $1.4 million for licensed family child care • million for an ELCC capital program $2.5 • $2 million for system-wide supports for Investments in our children are also supported by $3.4 million for ELCC related commitments made in prior years Care to child care worker wage lifts, Child Saskatchewan, special needs children and teen parents. An additional $500,000 is being provided to support family literacy by building upon existing programs and the community-based literacy system. [all Learning] G N I N N I G E B
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G N I D I V O R P We are improving education and training are improving We opportunities for future learners at all levels through funding for our K-12 school system. $587 million will be transferred to school divisions to support their operations and $18.3 million will fund school capital projects. The province has committed $24.8 million The province has and Science Fund (ISF) from the Innovation years to fund the InterVac over the next five initiative is project. This federal-provincial project funded from the the largest single infectious diseases and ISF which will study and vaccine delivery the testing of vaccines humans and animals. In systems for both is providing a 2007-08, the province to not only $3 million increase to the ISF, for allow the fund to meet its commitments but to enable a variety of project, the InterVac to promote other research projects, helping [AEE] Saskatchewan as a centre for innovation. to Enhanced supports will be provided meet their employers to recruit workers to labour market needs. This will include enhancements to saskjobs.ca, increasing and services, awareness of available programs including student employment programs. [AEE] Approximately two per cent Saskatchewan’s The workforce is earning minimum wage. wage Government has increased the minimum three times since 2005. The third increase to $7.95 per hour took effect on March 1, 2007. Increasing the minimum wage is helping approximately 7,000 workers across the province. [LAB] 90 Budget 2007-08 | Budget and Performance Plan Summary on projectsproducedin Saskatchewan. [SCN] anticipates spendingoverhalfofthefunding programming. Inthecomingyear, SCN $2.2 milliontopurchase380hoursof Communications Network(SCN)received In 2006-07,theSaskatchewan other sources.[CYR] arts organizationstoleverresourcesfrom and enhancingopportunitiesforartists targeted atimprovingtheincomeofartists will befundedfor$750,000.Thisfundingis Advisory CommitteeonStatusoftheArtist Key recommendationsoftheMinister’s TheWaniska AboriginalMusicShowcase– • TheWestern CanadianMusicAwards tobe • Further fundinghasalsobeenconfirmedfor: attracting andstagingthisevent. budget commitmentswereinstrumentalin Saskatchewan inAprilof2007.Previous accompany themaredestinedfor The JunoAwards andthecelebrationsthat a yearofcelebrationtheartsandmusic. coast andbeyond.Thiswillcontinuein2007, province havebeenrecognizedfromcoastto Athletic, musicalandculturaleventsinthe our reputationasagreatplacetolive. help definewhoweareandfurtherenhances successful eventsseemsto,atleastinpart, nation asbeinggracioushosts.Hosting Saskatchewan peopleareknownacrossthe S S U U P P $73,000 inprovincialfunding. funding; and, held inMooseJaw–$73,000provincial P P O O R R T T I I N N G G
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A A R R T T S S [SCN] over 270classroomsacrosstheprovince. communities. TheE-LearningNetworkreaches to Saskatchewanyouthrightintheir province, providingadditionalopportunities offers distanceeducationthroughoutthe SCN’s satellite-basedE-LearningNetwork $339,000 annualoperatingcost.[ITO] cost wasprovidedin2006-07andthereisa largest cities.Theinitial$1.3millionstart-up secondary areasofSaskatchewan’s four wireless Internetinthedowntownandpost- in 2006-07,willprovideaccesstofree Saskatchewan! Connected, enhancements isanimportantinvestment. with cuttingedgecommunication Keeping ouryouthconnectedtotheirworld between theprovinceandyoungpeople. event washostedtoopenadirectdialogue Saskatoon attractedover600delegates.The In February2007,aYouth Summitin C C O O N N N N E E C C T T I I N N G G
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P P E E O O P P L L E E Budget and Performance Plan Summary | Budget 2007-08 91 Employment Development Network For clarification, here is a list of acronyms For clarification, used in this document: [AEE] and Advanced Education [SAF] and Food Agriculture [CR][CPS] Community Resources Corrections and Public Safety [CYR] and Recreation Culture, Youth [ENV] Environment [FNMR] First Nations and Métis Relations [GR][DHT] Government Relations Highways and Transportation [SIR] Resources Industry and [ITO] Office Information Technology [JU][LAB] Justice Labour [LRN] Learning [NA][DPM] Northern Affairs Property Management [PSC] Public Service Commission [RECD] Regional Economic Co-operative [SCN] Saskatchewan Communications [SRC] Saskatchewan Research Council [SWA] Authority Saskatchewan Watershed N O I and Treasury Board and Treasury T 1 A M R O F N I
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R The departments of Advanced Education and Employment; Government Relations; Northern Affairs; and The departments of Advanced Education and Employment; Government Relations; Plans on the website Regional Economic and Co-operative Development will be posting their Performance at a later date. O F 1 This Summary document provides only This Summary document activities Government will highlights of the Much greater detail, undertake in 2007-08. and performance including key actions progress toward the stated measures to gauge for each of the outcomes, is available reporting departments Crown corporations on their individual websites. through Performance Plans can also be viewed at: website the Department of Finance’s http://www.gov.sk.ca/finance/accountability Government will report on this Performance the year in Plan Summary part way through and all departments will Report the Mid-Year progress in their report on their year-end corresponding Annual Reports.